Legal and regulatory update for the life and health sector

24 Mar 2021 – Takeovers Panel released electronic forms for independent adviser applications.

25 Mar 2021 – FMA advised of the release of the International Forum of Independent Audit Regulators (IFIAR) ninth annual survey of Members’ inspection results for the 2020 year. IFIAR is a membership organisation of 54 independent audit regulators, including the Financial Markets Authority (FMA). https://www.fma.govt.nz/news-and-resources/media-releases/ifiar-releases-2020-survey-of-inspection-findings/

23 Mar 2021 – RBNZ released a further update on amended statistics release dates in table form as follows:

Survey

Reference period

Series

Original date

New publication date

NZ debt securities

Jan-21 and Feb-21

D30-D31, D35

16-Mar-21

25-Mar-21

Household balance sheet

Dec-20

C21-C22

5-Mar-21

30-Mar-21

Foreign exchange turnover ($m daily averages)

Jan-21 and Feb-21

B4

15-Feb-2021 and 12-Mar-2021

8-Apr-21

Bank Income Statement

Dec-20

S20-S21

2-Mar-21

14-Apr-21

Bank Financial Strength Dashboard

Dec-20

Key metrics

3-Mar-21

15-Apr-21

Liquidity

Feb-21

L1-L3

1-Apr-21

16-Apr-21

24 Mar 2021 – Parliament completed the third reading for the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_98047/taxation-annual-rates-for-2020-21-feasibility-expenditure The Government also announced that it intends to remove interest deductions on residential properties (except for new builds), and will consult on the details of this measure. https://taxpolicy.ird.govt.nz/news/2021/2021-03-23-government-property-announcements


Warning on IP Premium Tax Deductibility

The Australian Taxation Office is allocating resources to investigate whether the tax deductibility of income protection insurance premiums is being claimed appropriately. Click here to read more. Of specific concern is the constant addition of non-income-related benefits (such as death benefits, and lump sums for specific conditions) which should not be tax deductible are growing to the point that they will need to be excluded. At which point companies may be faced with a choice between offering 'pure' income protection policies, with few add-ons, and continuing down the current track. If you like the idea of clients taking advice on each of the main risk protection benefits and constructing a complete plan you may like the idea of 'pure' IP contracts too, it could help remove double-ups and confusion.