FMA publishes info sheet for FAPs about compliance with record keeping obligations, and other news

The Financial Markets Authority has published an information sheet for Financial Advice Providers about how they can demonstrate compliance with record keeping obligations.

Under the new financial advice regime Standard Condition 1 for both transitional FAP licences and full FAP licences states: “You must create in a timely manner and maintain adequate records in relation to your financial advice service.”

The information sheet provides an overview of the record keeping obligations and sets out areas for FAPs to consider when reviewing their record keeping practises. It also includes examples to illustrate how FAPs can demonstrate compliance with the requirements.

More daily news:

Good Returns: The new-client conveyor-belt is broken

Christian Hawkesby holding Post-Monetary Policy Statement Presentations 31 May and 1 June

Kiwibank updates branding and introducing new slogan

Fidelity Life launches ‘Mark It’, a marketing and communications resource, and other news

Fidelity Life has launched Mark It, a marketing and communications resource to help advisers better connect with customers - includes how-to-guides, communication templates and educational content.

Mark it will include how-to-guides and communication templates designed for a range of customer life cycle scenarios, as well as educational content about different types of life insurance for customers’ changing ages and stages.

All Mark it content is written in plain English. New tools and content will be added over time, with the aim of helping advisers provide useful, educational content for customers.

More daily news:
RBNZ raises OCR 2%
Terrance Coe believes delay of NZIIS commencement is sensible; ACC should use TPA's for optimal results
Opposition criticises Income Insurance Bill

Legal and regulatory update for the life and health insurance sector

23 May 2022 – The Council of Financial Regulators posted brief comment and links to the Environment Ministry releases on New Zealand’s first Emissions Reduction Plan and the consultation being undertaken on the Draft National Adaptation Plan, with the consultation closing on 3 June 2022.

24 May 2022 – RBNZ published its feedback to responses received on its Insurance (Prudential Supervision) Act (IPSA) 2010 Policyholder Security consultation.

24 May 2022 - As part of Privacy Week 2022, the Office of the Privacy Commissioner joined Charities Services on a webinar called ‘Privacy 101 for Charities’.

24 May 2022 – The FMA held a webinar presentation for the financial services industry on the steps intended to be followed by the FMA to develop Conduct of Financial Institutions (CoFI) Intermediated Distribution Guidance.

Insurance Industry says policyholder guarantee scheme unnecessary, and other news

David Hargreaves writes about how insurers are universally against development of a policyholder guarantee scheme on Most policyholders in focus group expressed some willingness to pay a little more for 'fully guaranteed insurance' so long as increased costs would not increase insurer profits.

The Reserve Bank has been pushed back fairly firmly by the insurance industry on suggestions of developing a policyholder guarantee scheme.

Last year the central bank said it was considering introducing a scheme to pay out claims in the event of an insurance company failing.

The concept would effectively insure policyholders against the risk of their insurer collapsing….

"They felt a scheme should be unnecessary if other regulatory settings were correct; would risk moral hazard; would increase costs for policyholders (in a market that already showed signs of underinsurance); and would be an inefficient way of providing protection," the RBNZ said in its submissions summary.

More daily news:

Cigna NZ launches 'new professionals option'

Reserve Bank's consultation on insurance legislation finds financial information insurers publish is broadly appropriate

2022 Budget raises annual operating funding of FMA

Allianz Global Insurance Report finds premiums jumped by 5.1% in 2021

Legal and regulatory update for the life and health insurance sector

18 May 2022 – RBNZ published its “Enforcement Principles and Criteria Guidelines”, which are the foundation of its enhanced enforcement framework.

18 May 2022 – NZX gave notice of changes to the NZX Listing Rules, approved by the Financial Markets Authority (FMA) on 5 May, 2022, as well as updates to three Guidance Notes and also a Practice Note dealing with the Issues of Warrants, with all of the changes and updates coming into effect on 17 June 2022.

18 May 2022 – Commerce Commission advised that, under the new Retail Payment Systems Act 2022, the Mastercard and Visa credit and debit card networks will be the initial focus of the Commerce Commission’s work to promote competition and efficiency in the retail payment system.

Legal and regulatory update for the life and health sector

9 May 2022 – The Data and Statistics Bill, to replace the Statistics Act, was reported back to Parliament from the Select Committee.

10 May 2022 – RBNZ issued a statement expressing strong support for the External Reporting Board’s (XRB) plans to develop disclosure as a tool to understand and mitigate climate-related financial risks.

Legal and regulatory update for the life and health insurance sector

5 May 2022 – NZ Police Financial Intelligence Unit released The Suspicious Activity Report related to AML for March 2022.

5 May 2022 – RBNZ advised of new data to be included in the Reserve Bank’s Tara-ā-Whare Household Inflation Expectations Survey, (M13), which will be available from 19 May.

5 May 2022 – Financial Services Council released KiwiSaver industry statistics from the March quarter 2022.

5 May 2022 – IRD issued a consultation on whether and how New Zealand should participate in an OECD/G20 tax measure aimed at base erosion and profit shifting by large multinational enterprises. Submissions close on 1 July 2022.

Legal and regulatory update for the life and health insurance sector

28 April 2022 – IRD issued a special report on FDR foreign currency hedges with changes arising from the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 enacted on 30 March 2022.

28 April 2022 – FMA published under FMA Stories a Q&A session with FMA’s Tammy Peyper talking about investing and what to do when markets get rocky.

28 April 2022 – RBNZ Deputy Governor and General Manager Financial Stability delivered a speech on New Zealand’s Experience with Macroprudential Policy.

29 April 2022 – RBNZ media release noting strong public interest in the Future of Money following recent RBNZ consultations on the topic.

Legal and regulatory update for the life and health insurance sector

26 April 2022 – Ho David Parker, Minister of Revenue, released a speech titled “Shining a light on unfairness in our tax system.”

27 April 2022 – RBNZ published its responses to feedback received on its proposed policy for debt serviceability restrictions (DSRs) on residential mortgage lending.

Legal and regulatory update for the life and health insurance sector

30 March 2022 – The third reading was completed in Parliament for the Commerce Amendment Bill.

31 March 2022 – RBNZ released a three-part analytical note that analyses the past experiences of different ethnicities, age groups, sexes, and regions during past recessions in New Zealand.

31 March 2022 – NZ Police Financial Intelligence Unit released its February 2022 “Suspicious Activity Report”.