Legal and regulatory update for the life and health insurance sector

3 July 2023 - The National Anti-Scam Centre will coordinate an investment scam fusion cell to combat the growing problem of investment scams, which are costing Australians more than $1 billion a year. The fusion cell will be led by the ACCC and ASIC and include representatives from the banks, telecommunications industry and digital platforms. It will be the first fusion cell co-ordinated by the new National Anti-Scam Centre and will identify methods for disrupting investment scams to minimise scam losses. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-180mr-national-anti-scam-centre-s-first-fusion-cell-to-disrupt-investment-scams/

4 Jul 2023 - An Analytical Note by the Reserve Bank of New Zealand has found that Monetary Policy Statements are written in a way that matches the aims of monetary policy. https://www.rbnz.govt.nz/hub/news/2023/07/analytical-note-finds-monetary-policy-statements-text-meets-policy-aims

4 Jul 2023 - The New Life Insurance Code of Practice for the Australian market came into effect on 1 July 2023. https://riskinfonz.co.nz/2023/07/04/australia-adopts-new-life-insurance-code-of-practice/

5 Jul 2023 - NZ Banking Association publish their regulatory radar for June 2023 https://financialadvice.nz/wp-content/uploads/2023/07/June-2023-Banking-Sector-Regulatory-Radar.pdf

5 Jul 2023 - APRA working on independent tripartite cyber assessment study with more than 300 banks, insurers and superannuation trustees https://www.apra.gov.au/news-and-publications/cyber-security-stocktake-exposes-gaps

6 Jul 2023 - Changes to ACC’s Accredited Employers Programme (AEP) aim to deliver a better experience for workers whose injury claims are handled by their employers rather than through ACC directly. https://www.beehive.govt.nz/release/better-experience-workers-changes-acc-programme

6 Jul 2023 - NZ Police Financial Intelligence Unit released “The Suspicious Activity Report” for May 2023 https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-may2023.pdf

7 Jul 2023 - The Government has issued a package of regulatory amendments to the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regime. The regulations will come into force in three stages from 31 July 2023 to 1 June 2025. 
The first stage of changes, which come into force on 31 July 2023, are to provide immediate regulatory relief for many reporting entities where risk has been identified as being low.
The second stage, which comes into force 1 June 2024, introduces new obligations for entities that already have existing AML/CFT obligations.
The final stage, which comes into force 1 June 2025, introduces new obligations on sectors that were not previously subject to AML/CFT obligations.
https://www.dia.govt.nz/AML-CFT-Regulatory-and-Legislative-Changes-Anti-Money-Laundering-and-Counter-Financing-of-Terrorism

7 Jul 2023 - The Financial Intelligence Unit (FIU) are running free goAML training sessions in Timaru and Christchurch. These in person sessions will run for 2 hours and will cover an overview of the goAML system, along with how to submit suspicious activity and prescribed transaction reports. https://www.dia.govt.nz/AML-CFT-Free-goAML-training

Scams on the rise in NZ

Scams have been taking prime place in the media recently, with everything from travellers being warned against connecting to Wi-Fi networks to police warning people what to look out for, police making significant arrests in term-deposit-style scams to the FMA warning about comparison websites.

Cert NZ recently reported that financial losses as a result of cyber crimes were up 66% in the first quarter of 2023 compared to the last quarter of 2022.

NZ banks and the Banking Ombudsman are working together to try and keep consumers safer from scammers. The latest initiatives is the 4 part documentary series ‘You’ve been scammed by Nigel Latta’, which starts tonight. Nigel explores the psychological tricks scammers use to exploit people and explains how better to protect yourself.

Miriam Dean KC, chair of the Banking Ombudsman scheme, said financial scams were rising exponentially and is urging banks to fast-track resolution of fraud complaints. Dean also called on other organisations oft impersonated by scammers, like NZ Post and Inland Revenue, to step up their activity in helping protect customers. Dean can see the benefits of setting up a dedicated anti-scam unit, the likes of Singapore’s Anti-Scam Command.

“Establishing an anti scam centre along these lines would have much to recommend it in my view, especially as a flood of scams grows day by day ... and scammers will turn to artificial intelligence to further their devious ends.”

More daily news:

Katrina Shanks writes of the importance of using simpler language

Sorted.org release new Money Personality Quiz

Swiss Re writes of restoring resilience: the need to reload shock-absorbing capacity

FinTechNZ: Importance of Data Quality for AML webinar July 25

Consumer Confidence Survey shows consumer confidence has improved but remains very subdued

Artificial sweetener Aspartame to be listed as “possibly carcinogenic to humans”

Legal and regulatory update for the life and health insurance sector

1 Jun 2023 - Following consultation on draft regulations, the Ministry of Justice have decided six of the proposed changes need to be in primary legislation. https://www.dia.govt.nz/AML-CFT-Update-on-changes-to-AML-CFT-Act-regulations

1 Jun 2023 - The FMA has filed High Court proceedings against Medical Assurance Society New Zealand Limited (MAS) and its subsidiaries for fair dealing breaches under section 22 of the Financial Markets Conduct Act 2013 (FMC Act). The FMA claims that between 2014 and 2022, MAS failed to apply the correct inflation adjustments on its customer policies, failed to apply multi-policy discounts and no claims bonuses, and underpaid life and disability claims to eligible clients. https://financialmarketsauthority.cmail20.com/t/r-l-tttjqly-btuitpxk-y/

1 Jun 2023 - The Accident Compensation (Access Reporting and Other Matters) Amendment Bill, was read a third time. This means people will now be able to access the minimum rate of compensation earlier – from the second week of injury instead of having to wait until the sixth week. https://www.beehive.govt.nz/release/faster-acc-payment-top-ups-and-fairer-system