Legal and regulatory update for the life and health insurance sector

15 Oct 2021 – IRD released a consultation on reporting requirements for domestic trusts, with submissions closing on 15 Nov 2021. https://taxpolicy.ird.govt.nz/publications/2021/2021-ip-reporting-requirements-domestic-trusts

18 Oct 2021 – RBNZ announced webinars on its Future of Money issues papers, as follows:

  • Future of Money – Stewardship
    • Thurs, 28 Oct, 2-3pm
    • Tues, 2 Nov, 7-8pm
  • Future of Money – Central Bank Digital Currency
    • Thurs, 28 Oct, 7-8pm
    • Tues, 2 Nov, 2-3pm

https://www.surveymonkey.com/r/Future-of-money-webinars


Legal and regulatory update for the life and health insurance sector

12 Oct 2021 – The FMA released advice that the Ministry of Justice commenced a statutorily required review of the AML/CFT Act on 6 Oct 2021, with the MOJ releasing a consultation document with submissions closing on 3 Dec 2021. https://consultations.justice.govt.nz/policy/aml-cft-review/

12 Oct 2021 – IRD released a commentary on the Supplementary Order Paper No. 64 to the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill, containing proposals aimed at limiting the deductibility of interest incurred for residential property investments. https://taxpolicy.ird.govt.nz/publications/2021/2021-commentary-sop-argrm-bill

13 Oct 2021- FMA issued guidance on the advertising of financial products. https://www.fma.govt.nz/news-and-resources/media-releases/fma-issues-guidance-on-advertising-of-financial-products

13 Oct 2021 – RBNZ issued a consultation seeking views on its enforcement framework with submissions closing on 24 November 2021. https://www.rbnz.govt.nz/news/2021/10/views-sought-on-enforcement-framework

13 Oct 2021 - 13 Oct 2021 – MBIE advised that the Minister of Commerce and Consumer Affairs has issued the Updated Addendum to the Responsible Lending Code: COVID-19. The addendum elaborates on and offer guidance on how lender responsibility principles and lender responsibilities may be implemented by lenders while dealing with borrowers who have been impacted by COVID-19. https://www.mbie.govt.nz/dmsdocument/17505-updated-addendum-to-the-responsible-lending-code-covid-19

 

 


Legal and regulatory review for the life and health insurance sector

28 Sept 2021 – FMA released its KiwiSaver Annual Report for the period ending 31 March 2021. https://www.fma.govt.nz/news-and-resources/media-releases/kiwisaver-reaches-81-billion/

28 Sept 2021 - The Government released the draft legislation outlining the details of the policy limiting the right to deduct interest costs on residential property investments.

https://www.beehive.govt.nz/release/details-interest-deductibility-rules-released

https://taxpolicy.ird.govt.nz/news/2021/2021-09-28-interest-limitation-proposals


Legal and regulatory update for the life and health insurance sector

23 Sept 2021 – First Parliamentary reading of the Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill completed, with referral to the Finance and Expenditure Select Committee. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_115767/taxation-annual-rates-for-2021-22-gst-and-remedial-matters

24 Sept 2021 - MBIE issued advice that the Responsible Lending Code has been updated to reflect the revised start date of 1 December 2021, while noting that Chapter 12 of the Code continues to come into force on 1 February 2022. https://www.mbie.govt.nz/assets/responsible-lending-code.pdf


Legal and regulatory update for the life and health insurance sector

8 Sept 2021 – NZ Police Financial Intelligence Unit published the July Suspicious Transaction Report together with a survey seeking feedback on the Suspicious Transaction Report. https://www.police.govt.nz/advice-services/businesses-and-organisations/nz-financial-intelligence-unit-fiu/fiu-reports

8 Sept 2021 – The Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill was introduced into Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_115767/taxation-annual-rates-for-2021-22-gst-and-remedial-matters

8 Sept 2021 – RBNZ released the results of its thematic review of bank liquidity, which identified areas for improvement. RBNZ also advised that it intends to commence a review of the liquidity policy in the first half of 2022. https://www.rbnz.govt.nz/news/2021/09/thematic-review-of-bank-liquidity-identifies-areas-for-improvement


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.