Winners at the 2024 FSC Awards announced

Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards. We’re lucky to work in an industry with so many dedicated, innovative people who have a passion for what they do; the awards recognise some of the best and brightest among us.

FSC Acting CEO Haydee Stroud said

“…it was a privilege to be able to see such a diverse range and high calibre of merit. Entrants contributions to the financial services sector and to the wider New Zealand community have all played a part in growing the financial confidence and wellbeing of all New Zealanders.”

• Contribution to Community Award – Toi Ora - nib and Ngāti Whātua Ōrākei

• Emerging Trailblazer Award – Leigh Bennett, Fidelity Life

• Excellence in Governance Award – The Compliance Company

• Workplace Savings Award – Bruce Kerr, Professional Trustee

• Excellence in Sustainability Practices Award – AIA New Zealand

• Excellence in Wellbeing & Inclusion Award – Southern Cross Health Insurance

• Team of the Year Award – Operations Team, Sharesies

• Chair’s Award for Services to the Industry – Ana-Marie Lockyer: Chief Executive Officer, Pie Funds

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Financial Services Federation welcome CCCFA reforms

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The FMA plans to review the mortgage advice sector

Report estimates additional value advisers add

ANZ wins Brand of the Year, Excellence in Marketing Communication Strategy and Excellence in Sponsorship Strategy at the New Zealand Marketing Awards

ASB wins Excellence in Social Purpose Driven Marketing Strategy at the New Zealand Marketing Awards

ASB sponsor the Climate Change & Business Conference 2024

Kiwis living in the most deprived areas are 60% more at risk of developing dementia than those in the least deprived areas

The FSC release their latest Money & You Report

The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. In all it paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.  

Some key findings include:

• 49% are somewhat or very unconfident in the overall economy (up from 45% in 2023), with women older generations and Europeans more likely to be unconfident in the economy. Those who are receiving financial advice are more positive about the impact of the economic climate.

• 94% of respondents are concerned about financial issues, with the cost of living cited as respondents’ top financial concern (66% very concerned), followed by inflation (51% very concerned) and house prices (45% very concerned).

• Financial pressures have resulted in a change in spending habits, with buying cheaper groceries (57%) and cutting back on takeaways (55%) and treat purchases (49%) the most common changes. Concerningly some New Zealanders have reported skipping meals (17%), limiting heating (24%) and avoiding medical treatment or skipping medication (16%).

• 31% of New Zealanders were unhappy with their financial situation this year (up from 22% in 2023 and 25% in 2022).

• There has been a drop in the number of retirees with more than 10 years of retirement savings, and an increase in those with less than one year of current retirement savings.

• 82% hold investments, with KiwiSaver the most likely held investment type.

• Troubling KiwiSaver trends include average member weekly contributions dropping 7.8% (comparing 2023 to 2021); hardship withdrawals are at an all-time high; the KiwiSaver gender gap continues to increase, now sitting at a $7,450 average balance difference between males and females. Most worryingly, the average KiwiSaver member who has been contributing all their working life may not have enough to support them during retirement, according to Massey University Retirement Expenditure Guidelines.

• Those who have struggled to make recent debt payments have been more proactive, with 29% reaching out to their bank (up from 20% in 2023) or speaking to family or friends (38% up from 28%).

 Research was conducted via online survey, with 2,002 respondents completing the data during March 2024.

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Chubb Life Chief Executive Gail Costa is to retire in April 2025

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Financial Advice NZ webinar 'The role of emotion and chemistry in client decision-making' 18 September

Clive Fernandes writes of how AI can help personalise financial advice

‘Inspiring Success’ event takes place on 7 November in Auckland

mySolutions webinar 'SimpleWills and your estate' 11 September

Debate whether it is it time to boost KiwiSaver contributions at FSC pre-conference session

Value For Money report highlights top performing ethical KiwiSaver funds

Lloyd Burr writes about how hard it is to start a new bank in NZ

Inland Revenue is proposing to make fees charged for fund management exempt from GST

GPs warn primary care is close to collapse

Southern Cross release their Healthy Futures Report

Southern Cross have released the Healthy Futures Report 2024, which surveyed 2,000 New Zealanders about their health and wellbeing behaviours. Some of the key findings include:

• The biggest concerns for New Zealanders were the cost of living (91%); violence in society (86%); not having access to good, affordable healthcare (84%); and affordable housing, mental health and not having access to cancer treatment services all at 82%.

• Health professionals remain the main source of health information (64%), followed by online articles/websites (52%), but social media is increasing in popularity with young people and Pasifika people (up 6% to 27%).

• A majority of people seek treatment immediately (12%) or within a day or two (47%), though 10% usually don’t seek professional advice or treatment.

• The main barriers to accessing healthcare include cost (35%) and wait times being too long (34%). There has been a jump in people not being able to access healthcare at the time they want (up 4% to 20%).

• When it comes to dental treatment, the main barriers are cost (60%) and not being covered by medical treatment (13%).

• New Zealander’s define ‘healthy’ as mental wellbeing (70%), avoiding smoking and tobacco (70%), getting enough sleep (67%), eating a balanced diet (67%) and emotional wellbeing (66%).

• Physical health concerns include level of fitness (65%), making sure kids eat healthy foods (65%), long term physical health effects (65%) and family health and wellbeing (65%).

• The average kiwi exercises for 30 minutes, three times a week – 61% don’t feel they are getting enough exercise. Being too tired (33%) and not having enough time (32%) continue to be the main barriers to exercising.

• While 92% of kiwis consider themselves knowledgeable about what healthy food is, 82% consider healthy eating to be expensive and 74% would like to lose weight.

• ·The top emotional wellbeing concerns are concentrated around family, with kiwis concerned about whether their children will cope with the pressures of life (60%), not having enough money to support myself/my family (55%) and parents/relatives getting elderly and needing care (51%).

• Only 44% of New Zealanders consider themselves as getting enough sleep, with those living with kids or living with a disability being more sleep deprived than others. Reasons given for not getting enough sleep included having too much to think about (49%), going to bed too late (41%) and being anxious or stressed (40%).

• While 88% consider work life balance to be important, only 33% consider they currently have a good balance. Factors kiwis consider as important to achieving a good work/life balance include having flexible working hours (43%), switching off from work when finished for the day (43%) and sticking to set work hours (34%). Conversely, factors contributing to a negative work/life balance include workload being too high (60%), financial pressures (46%) and not having flexible working hours (40%).

• Actions New Zealanders are taking to look after their emotional health and wellbeing include keeping your brain stimulated (60%), spending time outdoors (58%), nurturing and maintaining relationships (54%) and spending more time with family (52%).

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Partners Life New Adviser Training Course on 21 October

Finger-prick blood test developed to detect the hallmark protein in early Alzheimer’s

Te Whatu Ora and West Coast Health propose closing all after hours GP services

Changes announced to the way police respond to mental health call-outs

Simon Papa on what the Commerce Commission’s Banking report could mean for advisers

Simon Papa has written an excellent analysis of what the Commerce Commission’s final report on competition in the personal banking services sector could mean for mortgage advisers on Good Returns.

Simon summarises the recommendations likely to impact mortgage advisers, cautions that some of the recommendations may look different once implemented and acknowledges the Commission’s engagement with the advice sector after they released their March 2024 draft report. Simon posits that the recommendation that advisers make more applications to multiple banks is likely to result in more work for advisers, though this may be offset by banks improving application systems and making offers more comparable (and we’d love to hear what you think will end up happening!). Simon also discusses what a best interests duty could mean for advisers. It's a great read and we suggest you check it out.

We reached out to Simon around what advisers could do in light of these recommendations and he advised,

“Changes to law are required to implement most of the Commission’s recommendations. So advisers will have an opportunity to make submissions on the law changes. They can also try to engage with MPs and officials. Professional bodies will also get involved, so advisers can talk to them about adviser concerns.”

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TSB to pay $2.47m penalty for CCCFA breaches

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Two KiwiSaver schemes – Sharesies and Koura Wealth report larger losses but make revenue gains

Wait lists for cancer patients reducing survival chances

Kiwibank report $202 million after-tax profit

Kiwibank has featured in the news a lot recently, from the Commerce Commission’s recommendation that the Government should consider what is necessary to make Kiwibank a disruptive competitor, to the release of Kiwibank’s latest financial results.

Kiwibank posted a record $202 million after-tax profit for the year to June 30 2024, up 15% from the previous year. Kiwibank were able to grow their lending book by 9.3% to $32.4 billion. Impressively, home lending grew 2.7 times faster than the market and business lending grew 3 times faster than the market. Deposits increased by $2.4 billion, growing the deposit book by 9.4% to $28.2 billion

Steve Jurkovich, Kiwibank CEO, has said a $500 million capital infusion would

“give us a lot of runway to keep growing as fast as we are now, which is 9.5%, 10% [per annum], which is pretty large gains. That sort of investment over the next three, four years would give good runway.”

"With the right support and delivery of the right business plan and right initiatives, I think we could double our size in five years.”

Jurkovich has also said it may not be essential for the bank to remain 100% NZ owned, pointing to other examples of successful majority owned businesses like Air New Zealand. Jurkovich cautions that any requirement to pay sizeable dividends could impact their ability to grow, given that capital growth to date has mainly been via retained earnings.

Mortgage advisers now account for around 35% of Kiwibank’s total mortgage book, having originated 71% of Kiwibank home loans this year. Kiwibank’s accredited advisers have grown to about 1,000 now, up from 250 at June 30, 2022.

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Antonia Watson says the big banks can't afford to be NZ owned

TSB respond to the Commerce Commission’s banking study

FinTechNZ Hui Taumata 2025 is on 11 March 2025

Investment News release their KiwiSaver annual report

Study finds a majority of New Zealanders feel financially uncomfortable

Tips on what to eat to beat high blood pressure

Survey highlights increasing concerns among kiwi workers about their mental and physical health

The 2024 Workplace Wellbeing survey, conducted by nib New Zealand and the Employers and Manufacturers Association (EMA), has found that 80% of respondents have been negatively impacted by the current cost-of-living crisis.

• 64% are concerned for the mental health and wellbeing of their family

• 56% are worried about their own mental health and wellbeing

• 52% are concerned about the risk of burnout at work

• 50% said the rising cost of living has negatively impacted their mental health (rising to 63% of 16 – 30 year olds)

In more positive news, 61% said their workplace proactively manages wellbeing, up from 53% in 2022. Fewer employees are being impacted by understaffing (47% down from 64%), poor work-life balance (36%, down from 42%), and the pressure to work long hours (34%, down from 39%).

Kiwis are putting more value on systems that prioritise employee wellbeing, with 60% rating Employee Assistance Programmes (EAP) as important, and 72% valuing wellbeing initiatives and subsidies. The value of employer-provided insurance continues to grow, with 64% considering medical and health insurance a benefit they look for when switching jobs, up from 57% in 2022, 48% valuing income protection illness cover and 43% looking for life insurance benefits.

Rob Hennin, Chief Executive at nib New Zealand, said

“There’s no better time than now for employers to stand up and proactively support their teams’ mental and physical health, empowering them to perform at their best knowing there’s someone in their corner no matter what happens. Fostering this positive workplace culture starts from the top down, so it’s just as important for business leaders to embody these values in their day-to-day.”

The survey collected responses from 1,229 NZ workers this May.

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Life advisers reminded they need to actively review legacy policies

Compliance Refinery director Steve Burgess has reminded life insurance advisers they need to review legacy policies or risk opening themselves up to censure by the Financial Markets Authority (FMA).

Speaking at a Quotemonster roadshow event in Lower Hutt, Burgess said of legacy products,

“If you don't look at it, the regulator could decide that's you saying that product is suitable for your client.”

Burgess also cautioned that some legacy products have features that are difficult or impossible to replicate with new policies, so as well as listing the advantages of replacement policies, advisers need to be recording any disadvantages clients may face if they change.

Steve Wright has also written of how the FMA have flagged ‘suitability of advice’ as something they will be focusing on in future. Wright has helpfully listed some steps advisers should be following to help ensure the suitability of their advice, including having a suitable fact find process; needs analysis and quantification of client risks; avoiding limiting or transferring risks to an insurer; assessment of insurance types required and sums insured; and giving appropriate product recommendations.

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Financial Advice NZ's webinar on the Code of Professional Conduct is on 28 August

ASB's net profit after tax down 10% from previous year

Travis Hamilton named the New Zealand country Chair for the Million Dollar Round Table organisation

Patients across the country concerned at GP fee increases; GP’s say capitation funding insufficient

Most KiwiSaver providers have now submitted their KiwiSaver climate reports

Fidelity Life extend 3 months free until 31 December 2024

Fidelity Life has extended their 3 months premium free offer until 31 December. All new customers who take out an eligible policy will have their premiums covered for the first 3 months.

The offer is available to eligible new Platinum Plus, Platinum Plus Level Term, Mortgage Protectors and NZHL Life policies that are illustrated between 1-May and 31-December 2024, submitted within 30 days of the illustration being generated and issued within 6 months of the offer period end date.

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FinTech webinar 'Exploring the Australian fintech landscape' 19 August

KiwiSaver assets rose $3.5 billion to $110.8b at the end of the June quarter

Huge increase in the amount of chemotherapy being provided by the private sector in recent years

John MacDonald suggests compulsory health insurance is the answer to Health NZ’s overspend woes

Boris Sokratov believes his health insurance’s early access to services is the reason he’s still alive

nib launches an AI-driven symptom checker

nib has launched an AI-driven symptom checker, to help direct kiwis to the appropriate treatment, based on their needs. The symptom checker is available to all nib health policyholders through the my nib app.

Users input their symptoms and the symptom checker gives information on possible conditions as well as when and where to seek care. For a limited time, users advised to book a telehealth GP appointment will be able to get an appointment with Tend’s nationwide online GP service, at no additional cost.

nib New Zealand Chief Executive Officer, Rob Hennin, said

“It’s part of nib’s mission to help Kiwis take a more proactive approach to their health and wellbeing no matter where they are… AI-powered health tools, such as symptom-checkers, can help keep non-urgent medical cases out of hospital emergency departments, relieving some of the pressure on hospitals and emergency department staff, and help ensure people get the right level of medical attention.”

The symptom checker platform was developed by Infermedica and has been used in more than 30 countries, reaching more than 17 million users internationally.

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The ANZIIF Group Life Seminar is on 3 September in Sydney

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INFINZ seek feedback on 'Shifting the Dial on Diversity' report

New Zealand’s unemployment rate rises to 4.6% in the June quarter

AIA celebrate 5 years of AIA Vitality

AIA have released some statistics about AIA Vitality to celebrate five years of AIA Vitality being in the market.

• To date, over 60,000 people have joined AIA Vitality.

• On average, an AIA Vitality member in New Zealand completes a health and wellbeing assessment available in the app every 15 minutes.

• AIA Vitality members have completed over 18,500 free Vitality Health Checks.

• Since becoming AIA Vitality members:

  • 79% have moved to a healthy glucose range from an unhealthy glucose range.

  • 64% have moved to a healthy cholesterol level from an unhealthy level.

  • 49% have moved to a healthy blood pressure range from an unhealthy range.

• Less than 50% of New Zealanders meet the recommended guidelines of 2.5 hours of weekly physical activity but 95% of AIA Vitality Silver+ members meet this target.

• AIA Vitality members combined have walked the length of New Zealand 1,295 times.

• Members have achieved over 86,800 Status Reward vouchers and 976,500 Active Rewards vouchers – a combined worth of $9.1 million in rewards.

To celebrate the anniversary, AIA is giving customers who activate their AIA Vitality membership by 31 October the chance to win one of 20 Woolworths Gift Cards, each worth $500. Existing AIA Vitality members who hit their $5 weekly physical activity target anytime between 5 August and 1 September, go in the draw to win 1 of 5 Apple Store Gift Cards worth $729.

AIA have recently made some improvements to AIA Vitality, with a new AIA Vitality app with enhanced features and functionality being launched in April this year.

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AIA offer clients a chance to win a year's insurance

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AIA appoint Bianca Bettini as new AIA Vitality Coach

Andrew Bayly says the CCCFA’s director and senior management liability provisions to stay

Westpac connect Volley to their Open Banking platform

Bell Gully put together an overview of the Customer Data Right bill and the CDR framework

Finance Minister says she wants external investors for outside capital for Kiwibank

GP’s having to raise fees after insufficient government funding increase