Legal and regulatory review for the life and health insurance sector

29 July 2021 – Privacy Commissioner release confirming that Covid-19 vaccination status is personal information and so falls under the protections laid out in the Privacy Act 2020. https://privacy.org.nz/blog/the-covid-19-vaccination-and-privacy-rights/

30 July 2021 – RBNZ released an Op-Ed from the Reserve Bank Assistant Governor, Simone Robbers, titled “Sustainable Business: Working together on a path to a climate-resilient future.” https://www.rbnz.govt.nz/news/2021/07/working-together-on-a-path-to-a-climate-resilient-future

28 July 2021 - Minister of Commerce and Consumer Affairs, Hon David Clark, June 2021 diary released with the following potential financial services sector related meetings noted:

  • 10 June 2021 – Financial Markets Authority (Mark Todd, Chair; Rob Everett, CE)
  • 22 June 2021 – Takeovers Panel (Andy Coupe, Chair; Andrew Hudson, Chief Executive)
  • 24 June 2021 – Retirement Commissioner (Jane Wrightson, Retirement Commissioner)
  • 30 June 2021 - Chartered Accountants Australia and New Zealand (Peter Vial, NZ Country Head; Charlotte Evett, Government Relations Lead)

https://www.beehive.govt.nz/sites/default/files/2021-07/Hon%20Dr%20David%20Clark%20Proactive%20Diary%20Release%20June%202021.pdf

29 July 2021 – FMA release advising that AIA admits false and misleading representations to customers in FMA fair-dealing proceedings. https://www.fma.govt.nz/news-and-resources/media-releases/aia-misleading-representations-to-customers

29 July 2021 – FMA released cyber resilience information sheet for financial advice providers. https://www.fma.govt.nz/news-and-resources/media-releases/fma-releases-cyber-resilience-info-sheet-for-financial-advice-providers/

29 July 2021 – RBNZ advised that it will be holding a webinar on the interim Solvency Standard for insurers at 10 a.m. on Thursday, 5 August 2021, via Microsoft Teams. https://www.rbnz.govt.nz/regulation-and-supervision/insurers


Legal and regulatory update for the life and health insurance sector

22 July 2021 – FMA released a report on Insurance conduct and culture: Fire and general insurers update. https://www.fma.govt.nz/news-and-resources/reports-and-papers/fire-and-general-insurers-update/

22 July 2021 – The latest FMA update included information on a report released in June titled “Filing of financial statements: review findings and guidance. https://www.fma.govt.nz/assets/Reports/Filing-of-financial-statements-review-findings-and-guidance.pdf

22 July 2021 – The FMA update also included advice that:

  • The FMA will be consulting in the third quarter of 2021 on proposals for exemptions to provide relief for insolvent FMC reporting entities that are in liquidation, receivership or administration from certain financial reporting requirements under the FMC Act to determine whether a class exemption is required.
  • AML/CFT reports for the period 1 July to 2020 to 30 June 2021 are due by 31 August 2021. AML/CFT supervisors have released updated guidance designed to help reporting entities complete their annual AML/CFT report.

https://www.fma.govt.nz/compliance/guidance-library/annual-amlcft-report-user-guide/

  • Updated the AML/CFT content on the FMA website to include information for Financial Advice Providers and Authorised Bodies.

https://www.fma.govt.nz/compliance/amlcft/faqs/#fapaab

  • A reminder of the new AML/CFT regulations that came into effect on 9 July 2021 and the availability of guidance on the new regulations available on the FMA website.

https://www.fma.govt.nz/compliance/guidance-library/amlcft-regulations-update-2021

22 July 2021 – RBNZ announced a consultation on an interim Solvency Standard for insurers, which will determine the minimum amounts of capital that insurers must hold, with submissions closing 1 October 2021. https://www.rbnz.govt.nz/news/2021/07/reserve-bank-consults-on-interim-insurance-solvency-standard

22 July 2021 – APRA released its Private Health Insurance Annual Coverage Survey for 2020. https://www.apra.gov.au/news-and-publications/apra-releases-its-private-health-insurance-annual-coverage-survey-0

22 July 2021 - Retirement Commission released its latest survey into the financial capability of New Zealanders. https://retirement.govt.nz/news/latest-news/latest-financial-capability-study-proves-knowledge-is-power-with-positive-findings-for-maori/

22 July 2021 – In an article titled “England’s NHS data-sharing to third parties”, the Privacy Commission uses this to highlight the privacy issues relating to patient data that may need to be considered with the consolidation of New Zealand’s district health boards into a single agency called Health New Zealand. https://privacy.org.nz/blog/englands-nhs-data-sharing-to-third-parties/

Probably the two most interesting items here are the conduct report on general insurers and the Privacy Commission's interest in medical data sharing. So many of the options for modernising the sector rest on medical data sharing and banking data sharing that these are likely to be areas under continually increasing scrutiny. 


Legal and regulatory review for the life and health insurance sector

18 June 2021 – MBIE published a response to the review completed by PwC on the Research and Development Tax Incentive. https://www.mbie.govt.nz/about/news/research-and-development-tax-incentive-pwc-report/

18 June 2021 – NZX announced four appointments to the NZ Markets Disciplinary Tribunal for a three-year term, including John Dixon QC, Pip Dunphy, Dave Roberton and Rachael Newsome. https://www.nzx.com/announcements/374147

17 June 2021 – APRA released annual life insurance supplementary statistical tables and biannual life insurance institution-level statistics for December 2020. https://www.apra.gov.au/news-and-publications/apra-releases-life-insurance-supplementary-statistical-tables-and-0

17 June 2021 – FMA update released including comment on:

  • Research results on KiwiSaver switching during COVID-19, which showed a high level of switching among young people.

https://www.fma.govt.nz/news-and-resources/media-releases/high-kiwisaver-switching-during-covid19/

  • Gillian Boyes, FMA Manager Investor Capability, has written how the new research points to different ways KiwiSaver providers may better support investors when uncertainty next hits world markets.

https://www.fma.govt.nz/news-and-resources/fma-stories/kiwisaver-fund-switching-and-the-young

  • Financial advice update: Focus shifts to full FAP licensing, with a link to the licensing Guide and application kit

https://www.fma.govt.nz/assets/Licensing-guides/Introductory-guide-to-full-licence-requirements.pdf

  • Financial statements - extension to filing requirements

https://www.fma.govt.nz/news-and-resources/covid-19/temp-extension-reporting/

  • Auditor regulation and oversight plan 2021-2024

https://www.fma.govt.nz/news-and-resources/reports-and-papers/auditor-regulation-and-oversight-plan/

  • Lender responsibilities - information sheet update

https://www.fma.govt.nz/compliance/guidance-library/financial-advice-given-for-the-purpose-of-complying-with-lender-responsibilities/

  • Class exemption - Catalist issuers making 'same class' offers and small offers

https://www.fma.govt.nz/compliance/exemptions/current-exemption-notices/financial-markets-conduct-act-exemptions/financial-markets-conduct-catalist-public-market-exemption-notice-2021/

  • Class exemption - Employee share purchase schemes

https://www.fma.govt.nz/compliance/exemptions/current-exemption-notices/financial-markets-conduct-act-exemptions/financial-markets-conduct-employee-share-purchase-schemes-exemption-notice-2021/

17 June 2021 – RBNZ advised it had finalised bank capital rules and improved the format of banking rules. https://www.rbnz.govt.nz/news/2021/06/reserve-bank-finalises-bank-capital-rules-improves-format-of-banking-rules

15 June 2021 - New research released by the Financial Services Council (FSC) revealed the rise of the digital investor; micro-investing platforms and technology. https://www.fsc.org.nz/bulletin_display/x_blog_code/2150.html

16 June 2021 - Office of the Privacy Commissioner web post advised of its proactive approach to remind and warn individual organisations of their statutory responsibilities under the Privacy Act 2020, including three recent examples. https://privacy.org.nz/blog/opc-sends-warnings-to-organisations-to-get-it-right-next-time/

16 June 2021 – RBNZ advised of its updated shared Memorandum of Understanding (MoU) on macro-prudential policy with the Minister of Finance, including adding debt serviceability restrictions to the list of potential tools available. https://www.rbnz.govt.nz/news/2021/06/debt-serviceability-restrictions-added-to-policy-toolkit


Legal and regulatory review for the life and health insurance sector

10 May 2021 – Privacy Commissioner stated that reported privacy breaches doubled after new Privacy Act took effect. https://privacy.org.nz/publications/statements-media-releases/reported-privacy-breaches-double-after-new-privacy-act-takes-effect/

5 May 2021 – The Financial Markets Infrastructure Bill completed third reading in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_93550/financial-market-infrastructures-bill

 

 


Legal and regulatory review for the life and health insurance sector

29 Apr 2021 – The international Financial Action Task Force released its latest Mutual Evaluation Report on New Zealand’s Anti-money Laundering and Counter-terrorist Financing Measures. https://www.fatf-gafi.org/publications/mutualevaluations/documents/mer-new-zealand-2021.html

29 Apr 2021 – The IRD released the corrected Special report on the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021. https://taxpolicy.ird.govt.nz/publications/2021/2021-sr-arferm-act

30 Apr 2021 - Minister of Commerce and Consumer Affairs, Hon David Clark, March 2021 diary released with the following potential financial services sector related meetings noted:

  • 3 Mar 2021 – ASB (Vittoria Short, CE & Gavin Walker, Chair)
  • 3 Mar 2021 – Banking Ombudsman Event (Video conference – various attendees not listed)
  • 8 Mar 2021 – Payments NZ (Steve Wiggins, Chief Executive, Jane Retimana, GM Strategy and Corporate Affairs, Jamie Wood, Manager Clearing Systems, Sarah Hensen, General Counsel and Company Secretary)
  • 9 Mar 2021 - FinCap and NZBA Event (Speaking)
  • 11 Mar 2021 – IAG (Bryce Davies, Executive Manager Corporate Relations)
  • 17 Mar 2021 – Farmers Mutual Group (FMG) (Chris Black, CE, Dave Kibblewhite, Chief Financial, Investment & Risk Officer and Lisa Murray, Head of Compliance, Risk Quality, and General Counsel FMG)
  • 17 Mar 2021 – Financial Services Federation General Meeting (Speaking)
  • 17 Mar 2021 – Suncorp (David Flacks, Chair, Jimmy Higgins, CE, Suncorp NZ; Chris Curtain, CE, AA Insurance; Adrian Tulloch, MD Vero Liability Insurance, Hon Clayton Cosgrove)
  • 18 Mar 2021 – Tower Insurance (Blair Turnbull - CEO)
  • 24 Mar 2021 – ANZ (Sir John Key, Chair, Antonia Watson, CEO)
  • 24 Mar 2021 – BNZ (Doug McKay, Chair, Angela Mentis CE BNZ)
  • 24 Mar 2021 – Ando Insurance (John Lyon, CE Ando Insurance)
  • 24 Mar 2021 – Commission for Financial Capability (Jane Wrightson, Retirement Commissioner)
  • 30 Mar 2021 – Financial Markets Authority (FMA Chair, CE)
  • 30 Mar 2021 – Financial Markets Authority Board (FMA Board)
  • 31 Mar 2021 – Christians Against Poverty (Sam Garaway, CE, Francis Okapaleke, External Engagement Manager)
  • 31 Mar 2021 – Kiwibank (Steve Jurkovich, CE)
  • 31 Mar 2021 – Westpac (CE David McLean; Chair: Jon Dawson)

Weblink to the diary release https://www.beehive.govt.nz/sites/default/files/2021-04/Hon%20Dr%20David%20Clark%20Proactive%20Diary%20Release%20March%202021_0.pdf

28 Apr 2021 – Privacy Commissioner published commentary on its website titled, “That was close! How to respond when you narrowly avoid a serious privacy breach.” https://privacy.org.nz/blog/how-to-respond-privacy-breach/

29 Apr 2021 – RBNZ announced that the RBNZ has joined the Bank of Canada and the Reserve Bank of Australia forming a voluntary network to foster ongoing dialogue and raise awareness of Indigenous economic and financial issues. https://www.rbnz.govt.nz/news/2021/04/te-putea-matua-becomes-inaugural-member-of-new-international-central-bank-network

29 Apr 2021 – Treasury and the Ministry of Housing and Urban Development (HUD) proactively released Cabinet material and advice relating to the Government’s Housing Package announced on 23 March 2021. https://www.treasury.govt.nz/news-and-events/news/housing-package-proactive-release


Legal and regulatory update for the life and health insurance sector - UPDATED

15 Apr 2021 – Privacy Commissioner’s Office released updated guidance on privacy impact assessments, seen as an essential part of many projects and proposals, and able to be used to identify potential risks. https://www.privacy.org.nz/publications/guidance-resources/privacy-impact-assessment/

15 Apr 2021 – Commission for Financial Capability announced the release of the National Strategy for Financial Capability 2021-2024 and the formation of an umbrella group to boost money know-how. https://cffc.govt.nz/news-and-media/news/new-umbrella-group-to-boost-money-know-how/

14 Apr 2021 – Following on from recent consultation, FMA released its guidance on managed fund fees and value for money. This was released together with a submissions report and a republished version of the KiwiSaver performance fees guidance. https://www.fma.govt.nz/news-and-resources/media-releases/kiwisaver-value-for-money/

Most of us have absolutely no issue with the FMA providing guidance on KiwiSaver fees, as Clause 2 of Schedule 1 of the KiwiSaver Act 2006 states that KiwiSaver fees must not be unreasonable. However, the extension of guidance to all Managed Investment Schemes, perhaps even in the future to other financial products under its watch too, possibly under the general conduct provisions, may cause some providers - and even insurers - to wonder just how extensive the FMA role in future pricing may become. Balancing the benefit of a public guardian of the concept of value for money against the benefit of a functioning marketplace and the diversity of offering and innovation that it can offer is therefore certain to be a continuing conversation. It will be interesting to see how industry responds to this prospect. 

14 Apr 2021 – The latest FMA update advised that the FMA had updated the content on its website covering insider trading. https://www.fma.govt.nz/investors/resources/insider-trading/

14 April 2021 – The latest FMA update also reminded Financial Advisers to check their Financial Advice Provider has linked to them on the Financial Service Providers Register, noting that Financial Advisers not shown as linked to a licensed Financial Advice Provider, or authorised body, by 16 June this year may face deregistration if they offer no other services.


Legal and regulatory review for the life and health insurance sector

22 Feb 2021 – Privacy Commissioner released new guidance in relation to Privacy Principle 12 for sending personal information overseas, with the guidance in the form of two new interactive online tools to help organisations and businesses understand what they need to do. https://www.privacy.org.nz/publications/statements-media-releases/new-guidance-for-sending-personal-information-overseas/

19 Feb 2021 – RBNZ announced amended dates for statistical releases as follows:

Survey

Series

Original date

New publication date

New mortgage commitments - LVR

C30-35

29 January

19 February


Bank balance sheet
 

C5, C50-52, S10-41

29 January

23 February

Non-bank lending institutions

T1, T4, T11, T21,
T31

29 January

23 February


Legal and regulatory review for the life and health insurance sector

18 Feb 2021 – Privacy Commissioner newsletter confirmed that Privacy Week 2021 will take place 10-14 May 2021.

18 Feb 2021 – The former Minister of Commerce and Consumer Affairs, Hon Faafoi, released his diary for September 2020, being the final full month before the election held on 17 Oct, with the following potential financial services sector related meetings noted:

  • 1 Sept 2020 - Meeting with Hon Little, NZX and FMA (Mark Peterson and Rob Everett)
  • 15 Sept 2020 – Meeting with FMA (Mark Todd, Rob Everett and Edwin Mitson)

https://www.beehive.govt.nz/sites/default/files/2021-02/Hon%20Kris%20Faafoi%20-%20Proactive%20Diary%20Release%20-%20September%202020%20.pdf

17 Feb 2021 – FMA media release stating that the FMA fears Chinese New Zealanders are under-reporting investment scams. https://www.fma.govt.nz/news-and-resources/media-releases/under-reporting-investment-scams/