Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services. Some of these are provided in conjunction with Quality Product Research Limited - a subsidiary that brings you Quotemonster.

We believe that good decisions are more likely to occur when we have good information about the market environment in which we operate. Intuitive leaps and creative decisions are always required, of course, but the more they are based on a firm foundation of observation, the better they tend to be.

Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

Upcoming XRB events; FMA appoints new Executive Director Transformation and Operational Delivery; NZFIU release latest CASH report.

3 October 2024 - The External Reporting Board is hosting two events on 8 November: IASB Work Programme for Company Directors and IFRS 18 Insights. https://www.xrb.govt.nz/news/pitopito-korero/

3 October 2024 - FMA appoints Kari Jones as Executive Director Transformation and Operational Delivery. https://www.fma.govt.nz/news/all-releases/media-releases/fma-appoints-kari-jones/

3 October 2024 - NZ Police Financial Intelligence Unit release “The CASH Report” for September 2024. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-sep2024.pdf

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Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

XRB to publish consultation on climate; FMA report on KiwiSaver; RBNZ submit on banking competition.

24 Sep 2024 - The External Reporting Board (XRB) has announced that within the month they will publish a consultation document exploring options for transitional adjustments to the Aotearoa New Zealand Climate Standards.  https://www.xrb.govt.nz/news/latest-news/

24 Sep 2024 - The Financial Markets Authority have published their KiwiSaver Annual Report 2024. https://www.fma.govt.nz/library/reports-and-papers/kiwisaver-report/

26 Sep 2024 - The RBNZ have published their submission to Parliament’s Finance and Expenditure Committee Inquiry into Banking Competition, which outlines the RBNZ’s financial stability mandate, and highlights areas where they can support competition in the banking sector. https://www.rbnz.govt.nz/hub/news/2024/09/rbnz-releases-banking-competition-select-committee-submission

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Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

MBIE seek feedback on Customer and Product Data Bill; COFR release August 2024 quarterly statement; FMA file charges against a former financial adviser; Samantha Barrass' speech from the FSC conference; FMA cancel Integrity Advisers Insurance Limited’s FAP licence for engaging in serious misconduct; XRB publishes exposure draft; RBNZ publish Christian Hawkesby's speech from the FSC Conference.

29 Aug 2024 - MBIE are seeking feedback on how the Customer and Product Data Bill will apply to the banking and electricity sectors. Consultation on their discussion paper 'open banking regulations and standards under the customer and product data bill' is due by 10 October 2024. https://www.mbie.govt.nz/have-your-say/exploring-a-consumer-data-right-for-the-banking-sector

30 Aug 2024 - The Council of Financial Regulators (CoFR) release their Quarterly Statement for August 2024. https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-august-2024.html

3 Sep 2024 - The Financial Markets Authority has filed criminal charges against a former financial adviser. The defendant, who has interim name suppression, has pleaded not guilty to two representative charges of theft by a person in a special relationship. The FMA alleges that the defendant procured approximately $1.7 million from two sets of clients on the basis that he would invest the funds procured on their behalf. It is alleged the defendant instead used the funds obtained for personal purposes. The alleged offending occurred between 2016 and 2022.  https://www.fma.govt.nz/news/all-releases/media-releases/fma-files-criminal-charges-against-former-financial-adviser/

4 Sep 2024 - The FMA publish Samantha Barrass' speech from the Financial Services Council 2024 Conference. https://www.fma.govt.nz/library/speeches-and-presentations/financial-services-council-conference-2024/

4 Sep 2024 - The Financial Markets Authority has cancelled Integrity Advisers Insurance Limited’s (Integrity) Financial Advice Provider (FAP) licence for engaging in serious misconduct.
Integrity is a Christchurch-based financial service provider that held a full FAP licence, providing financial advice to approximately 500 retail customer.
Following an investigation, the FMA found that Integrity breached its market services licensee obligations by failing to:
• give priority to client’s interests
• comply with the Code of Professional Conduct for Financial Advice Services
• treat customers fairly
• act with integrity. 
The breaches relate to Integrity’s treatment of clients who wanted to cancel their respective insurance policy between September 2022 and June 2023 (affected clients).  

https://www.fma.govt.nz/news/all-releases/media-releases/fma-cancels-integrity-licence/

5 Sep 2024 - Concerns about inconsistent application and insufficient disclosures of climate-related matters in financial statements has led the International Accounting Standards Board (IASB), in collaboration with the International Sustainability Standards Board (ISSB), to develop an Exposure Draft outlining eight illustrative examples.  https://www.xrb.govt.nz/consultations/accounting-standards-open-for-consultation/reporting-climate-related-and-other-uncertainties-in-financial-statements/

5 Sep 2024 - The Reserve Bank of New Zealand publish Christian Hawkesby's speech at the FSC24 Conference. https://www.rbnz.govt.nz/hub/publications/speech/2024/resilience-as-a-pathway-to-prosperity

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AIA release their 2023 Sustainability Report

AIA has released its 2023 Sustainability Report: Sustaining Healthier, Longer, Better Lives.

AIA has released its 2023 Sustainability Report: Sustaining Healthier, Longer, Better Lives. Key highlights include:

  • Achieved Toitū carbonreduce certification

  • Paid 92% of claims received, totalling $734.8M in 2023

  • Grew to 55,000+ AIA Vitality members, encouraging members to improve their physical and mental wellbeing

  • Invested into the Betashares Global Sustainability Leaders and Australian Sustainability Leaders funds

  • Began transitioning fleet to hybrid vehicles to reduce fuel usage

  • 2023 Gallup Engagement Survey Top Quartile in global finance and insurance industry benchmark

  • Partnered with the Sustainable Business Council, hosting a webinar highlighting their Environment and Our Health Report.

AIA was recognised for its sustainability efforts, winning the 2023 Australian and New Zealand Institute of Insurance and Finance Awards for Excellence in Environmental, Social and Governance (ESG) Change, and the Financial Services Council of New Zealand Award for Excellence in Sustainable Practices.

Nick Stanhope, AIA NZ CEO, said

“At AIA NZ, our dream is for New Zealand to be one of the healthiest and best protected nations in the world. We understand that environmental sustainability not only has an impact on the wellbeing of our planet, but on our physical and mental health as well.

By rolling out initiatives and practices which support our ESG goals, we’re demonstrating our commitment to safeguarding the environment and the health of our communities.”

 

More news:

Fidelity Life offer premium waivers to those affected by extreme weather

Partners Life 3-day Training Course starts 19 August

External Reporting Board hold Sandbox Session for Assurance Practitioners

ANZ introduces behavioural biometrics collection, an anti-scam measure

Five strategies for advisers to navigate a high-rate environment

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Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

Commerce Commission’s preliminary view on Payments NZ developing framework relating to provision of API; ASIC issue Cost recovery Implementation Statement; XRB publish interim report on Climate-Related Disclosure Framework evaluation; maximum compensation for complaints to rise; APA & ASIC publish info to help insurers prepare for the start of the Financial Accountability Regime; Privacy Commissioner publishes Statement of Performance Expectations and launches free online toolkit.

1 Jul 2024 - The Commerce Commission has reached a preliminary view that it should grant conditional authorisation to Payments NZ Limited to work with current and future API providers (i.e., banks) and third parties (e.g., fintechs) to develop and apply a partnering framework relating to the provision of API services by API providers to third parties. https://comcom.govt.nz/news-and-media/media-releases/2024/commerce-commission-issues-draft-determination-on-payments-new-zealands-application-to-further-develop-its-open-banking-framework

8 Jul 2024 - ASIC issued its 2023-24 Cost Recovery Implementation Statement (CRIS). The CRIS outlines estimated regulatory costs and levies for each industry subsector to help entities plan and budget for levies and fees to be charged. https://asic.gov.au/about-asic/news-centre/news-items/asic-releases-estimated-industry-funding-levies-for-2023-24/

11 Jul 2024 - The External Reporting Board publish an interim report on New Zealand Climate-Related Disclosure Framework evaluation. https://www.xrb.govt.nz/news/insights/aotearoa-new-zealand-climate-related-disclosure-framework-evaluation-interim-report-published/

11 Jul 2024 - Financial limits for complaints are being raised across the four approved financial dispute resolution schemes from 18 July 2024. The Banking Ombudsman Scheme, the Insurance & Financial Services Ombudsman Scheme, Financial Services Complaints – a Financial Ombudsman Service, and the Financial Dispute Resolution Service will have the same thresholds for complaint values and compensation, providing consistency for consumers across the sector. The key change is raising the maximum compensation to $500,000 +GST. https://fdrs.org.nz/resources/news/increased-compensation-limits-for-financial-disputes/

11 Jul 2024 - The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published new information to help insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR). The FAR already applies to the banking industry and takes effect for the insurance and superannuation industries from 15 March 2025.

New information includes:

  • an amendment to the Regulator rules, which prescribes key functions information for inclusion in the FAR register of accountable persons for insurance and superannuation industries; see Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 and Financial Accountability Regime Act (Information for register) Regulator Rules 2024; and

  • a joint ASIC and APRA letter summarising key issues raised during consultation and their response, including the concept and application of key functions.

https://www.apra.gov.au/news-and-publications/apra-and-asic-issue-final-rules-and-information-for-financial-accountability

12 Jul 2024 - The office of the Privacy Commissioner has published their Statement of Performance Expectations 2024-2025. https://privacy.org.nz/publications/corporate-reports/statement-of-performance-expectations-2024-2025/

15 Jul 2024 - The Office of the Privacy Commissioner has launched a free online toolkit today to help businesses and organisations do privacy well. https://privacy.org.nz/publications/statements-media-releases/new-privacy-toolkit-set-to-support-business-and-organisations/

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Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

New guides to help people understand Climate-related Disclosures; APRA release new digital prudential framework; FMA publish auditor regulation and oversight plan; reappointment of RBNZ Chair; feedback sought on Financial Advice Code; FMA spotlight KiwiSaver fund types; Minister of Commerce & Consumer Affairs May diary released.

19 Jun 2024 - The Financial Markets Authority and the External Reporting Board have jointly produced a set of guides designed to help people understand the Climate-related Disclosures (CRD) regime and the information being provided in climate statements which are now starting to be published by climate reporting entities. https://financialmarketsauthority.cmail20.com/t/r-l-tdgjjx-btuitpxk-y/

19 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has announced the release of the new digital prudential framework in the form of the "Prudential Handbook".  The Handbook brings all APRA's prudential standards, guidance and supporting information into one place; presents them in a digital format that can be easily navigated and searched; and caters to a range of different users across regulated industries and in the broader community. https://www.apra.gov.au/news-and-publications/apra-releases-new-digital-prudential-handbook

20 Jun 2024 - The Financial Markets Authority has published its Auditor Regulation and Oversight Plan 2024-2027. The plan sets out how the FMA aims to improve the audit quality of Financial Markets Conduct reporting entities. https://www.fma.govt.nz/news/all-releases/media-releases/fma-publishes-auditor-regulation-and-oversight-plan-2024-2027/

20 Jun 2024 - Professor Neil Quigley has been reappointed as Chair of the Reserve Bank of New Zealand Board for a further term of two years, until 30 June 2026. https://www.beehive.govt.nz/release/reserve-bank-chair-reappointed

21 Jun 2024 - The Financial Advice Code Committee is seeking feedback on proposed amendments to the standards of competence, knowledge, and skill in the Financial Advice Code. https://financialadvicecode.govt.nz/2024/06/21/update-21-june-2024-consultation-on-financial-advice-competence-knowledge-and-skill/

24 Jun 2024 - The FMA's new ‘Spotlight’ series looks at the different kinds of KiwiSaver funds and explores how they work. https://www.fma.govt.nz/library/articles/spotlight-on-conservative-funds/

24 Jun 2024 - Minister of Commerce and Consumer Affairs, Hon Andrew Bayly May 2024 diary released  with the following potential financial services sector related meeting noted:

  • 2 May 2024 – MEET: FMA (FMA officials)

  • 7 May 2024 – MEET: Commerce Commission Board

  • 10 May 2024 – MEET: Institute of Financial Professionals NZ (Board members)

  • 10 May 2024 –MEET: Kiwisaver Stakeholders Roundtable Lunch

  • 16 May 2024 – ATTEND: Institute of Finance Professionals NZ Awards Dinner

  • 17 May 2024 -CALL: Retirement Commissioner (Jane Wrightson)

  • 22 May 2024 – MEET: External Reporting Board (Alex Burton, Michele Embling)

  • 23 May 2024 – MEET: Commerce Commission (Commerce Commission Officials)

https://www.beehive.govt.nz/sites/default/files/2024-06/Proactive%20Diary%20Release%20May%2024%27%20Hon%20Andrew%20Bayly%20%281%29.pdf

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Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

APRA releases prudential practice guide; FMA publishes info for smaller firms on fair conduct programmes and applying for CoFI licence; RBNZ release updated design proposals for their business expectations survey; XRB launch Standards Navigator.

13 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has released its finalised prudential practice guide to help banks, insurers and superannuation trustees strengthen their management of operational risk and improve business continuity planning. https://www.apra.gov.au/news-and-publications/apra-finalises-cross-industry-guidance-on-operational-resilience

14 Jun 2024 - The Financial Markets Authority has published an information sheet specifically for smaller firms to assist in establishing and maintaining a Fair Conduct Programme (FCP) and applying for a Financial Institution (CoFI) licence.  https://www.fma.govt.nz/news/all-releases/media-releases/fma-provides-additional-support-to-smaller-firms-for-cofi-licensing/

17 Jun 2024 - The Reserve Bank of New Zealand has released Tara-ā-Umanga Business Expectations Survey: Design proposals following consultation and pilot, which outlines lessons learnt and resulting design proposals for their new Business Expectations Survey, BES, Tara-ā-Umanga. Changes include making the survey shorter and quicker for businesses to fill in; questions will focus on inflation expectations, wages, and unemployment; they will survey businesses in the primary industry; and they will not include very small businesses (those with fewer than 6 employees). https://www.rbnz.govt.nz/statistics/surveys/expectations-survey-information-for-survey-participants/business-expectations-survey-design-and-development

18 Jun 2024 - The External Reporting Board has launched the XRB Standards Navigator, which takes static PDF versions of XRB standards and presents them in a more accessible, dynamic and user- friendly format. https://standards.xrb.govt.nz/standards-navigator/

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Kelly O Kelly O

Legal and regulatory update for the life and health insurance sector

Office of the Privacy Commissioner asks for submissions on guidance; RBNZ activates DTI restrictions; FMA holds webinars on how to apply for a COFI licence and how to submit FAP regulatory returns; FMA publish findings from monitoring FAPs; The Accident Compensation (Interest on Instalment Plans) Amendment Bill was introduced to Parliament; APRA emphasise importance of data backups; CEO of the External Reporting Board resigns; COFR release latest Quarterly Statement; RBNZ releases dates for Monetary Policy Statement publication; Commerce Commission files criminal charges against Kiwibank

22 May 2024 -  The Office of the Privacy Commissioner asks for submissions on new guidance, Poupou Matatapu – doing privacy well. https://privacy.org.nz/news/consultations/poupou-matatapu/

28 May 2024 - The Reserve Bank of New Zealand - has confirmed the activation of Debt-to-Income (DTI) restrictions and loosening of Loan-to-Value Ratio (LVR) restrictions. https://www.rbnz.govt.nz/hub/news/2024/05/reserve-bank-activates-debt-to-income-restrictions

30 May 2024 - The Financial Markets Authority is holding a webinar on how to apply for a CoFI licence at 11am on 5 June. To attend, email cofi@fma.govt.nz

30 May 2024 - The Financial Markets Authority publish findings from the FMA’s supervision activities and monitoring of Class 1 and 2 licensed financial advice providers.  https://www.fma.govt.nz/news/all-releases/media-releases/fap-monitoring-insights-report/

30 May 2024 - The Financial Markets Authority is holding a series of online sessions to help Financial Advice Providers submit their FAP regulatory returns.

Session 1 - Friday 14 June 2024 at 9am
Session 2 - Monday 24 June at 2pm
Session 3 - Monday 08 July at 10am
Session 4 - Tuesday 16 July at 10am

30 May 2024 - The Accident Compensation (Interest on Instalment Plans) Amendment Bill was introduced to Parliament https://bills.parliament.nz/v/6/00103c69-0b28-4ad1-a702-08dc80370942?Tab=history

3 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has written to all APRA-regulated entities emphasising the critical role of data backups in cyber resilience. The letter details the common issues observed in backup practices that could hinder system restoration during an incident. APRA expects regulated entities to review their backup arrangements and address any identified gaps promptly. https://www.apra.gov.au/news-and-publications/apra-clarifies-expectations-on-cyber-security-and-adequacy-of-backups

4 Jun 2024 - The Chief Executive of the External Reporting Board (XRB), April Mackenzie, has resigned. https://www.xrb.govt.nz/news/latest-news/

7 Jun 2024 - The Council of Financial Regulators release their Quarterly Statement for June 2024. Kris Faafoi joined the meeting to discuss the insurance sector’s priorities, risks, and challenges. The conversation covered three priority areas: 1) insurance affordability; 2) resilience; and 3) the regulatory environment. https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-june-2024.html

11 Jun 2024 - The Reserve Bank of New Zealand has released the dates for publication of its quarterly Monetary Policy Statement, Monetary Policy Review decisions and the 6-monthly Financial Stability Report. The new dates cover the period from August 2025 to July 2026. https://www.rbnz.govt.nz/hub/news/2024/06/monetary-policy-announcement-and-financial-stability-report-dates-for-late-2025-and-2026

11 Jun 2024 - The Commerce Commission has filed criminal charges against Kiwibank Limited (Kiwibank), alleging systemic breaches of the Fair Trading Act. The breaches relate to issues that resulted in more than $7 million being incorrectly charged to over 36,000 customers for fees and interest rates in relation to home loans, credit cards and overdrafts, over a period of several years. https://comcom.govt.nz/news-and-media/media-releases/2024/kiwibank-faces-criminal-charges-following-issues-that-caused-over-$7m-in-overcharges

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Legal and regulatory update for the life and health insurance sector

13 Dec 2023 - The Reserve Bank of New Zealand acknowledges the amended Remit for the Monetary Policy Committee (MPC) issued by the Minister of Finance. The MPC Remit sets the operational objectives for monetary policy. The amended Remit retains an inflation target of 1% to 3% over the medium-term, with a focus on the 2% mid-point, and removes the objective to support maximum sustainable employment. https://www.rbnz.govt.nz/hub/news/2023/12/monetary-policy-remit-amended

14 Dec 2023 - The Reserve Bank of New Zealand has issued a formal warning to Citibank N.A. New Zealand Branch (Citibank NZ) relating to the wire transfer identity requirements under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.   https://www.rbnz.govt.nz/hub/news/2023/12/citibank-nz-issued-formal-warning-under-aml-cft-act

14 Dec 2023 - FMA offices are closed from midday, Friday 22 December, and will reopen 8.30am, Monday 8 January 2024 https://www.fma.govt.nz/contact/christmas-2023-holiday-hours/

14 Dec 2023 - The FMA has censured Go Financial Solutions Limited for failing to comply with several obligations under its financial advice provider (FAP) licence.  Go Financial Solutions is a Christchurch-based FAP that provides advice on health, life and business insurance and mortgage lending. During a monitoring review earlier this year, the FMA found that Go Financial Solutions:

  • Had inadequate record keeping in relation to advice given to its clients

  • Failed to gather sufficient information about a client’s circumstances and was unable to demonstrate that recommendations made to clients were suitable 

  • Failed to ensure its clients understood the financial advice they received

  • Failed to exercise care, diligence and skill when providing financial advice to its clients. 

https://www.fma.govt.nz/news/all-releases/media-releases/fma-censures-go-financial-solutions/

14 Dec 2023 - The Australian Prudential Regulation Authority (APRA) has released the bi-annual life insurance institution-level statistics publication. https://www.apra.gov.au/news-and-publications/apra-releases-life-insurance-institution-level-statistics-0

14 Dec 2023 - APRA and ASIC have released an update to life insurers and friendly societies (life companies) on premium increases in the life insurance industry. https://www.apra.gov.au/news-and-publications/apra-and-asic-release-an-update-on-premium-increases-life-insurance-industry

15 Dec 2023 - Michele Embling, Chair of the External Reporting Board (XRB), has announced that the Climate-related Disclosures standards have now been published. https://www.xrb.govt.nz/news/latest-news/

15 Dec 2023 - ASIC today published its annual dashboard of regulatory costs for 2022-23 by activity for each sector and subsector under the industry funding model (IFM). https://asic.gov.au/about-asic/news-centre/news-items/asic-industry-funding-release-of-2022-23-annual-dashboard-and-summary-of-variances/

15 Dec 2023 - The Council of Financial Regulators has released an updated Regulatory Initiatives Calendar for the financial sector for Q4 2023. https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q4-2023.pdf

19 Dec 2023 - The Government is introducing and progressing under urgency a Bill to repeal the Taxation Principles Reporting Act 2023 https://www.beehive.govt.nz/release/government-introduces-taxation-principles-reporting-act-repeal-bill

19 Dec 2023 - Health Minister Dr Shane Reti is appointing a Crown observer to Health New Zealand – Te Whatu Ora https://www.beehive.govt.nz/release/crown-observer-be-appointed-health-new-zealand

19 Dec 2023 - The Climate Governance Initiative summarises the key pieces of information relevant to board directors from the UAE Consensus that was agreed in Dubai at the COP28 climate conference, to help directors understand the implications on business strategy and investment decisions. https://www.chapterzero.nz/news/cop28-key-outcomes-for-board-directors/

19 Dec 2023 - The Taxation Principles Reporting Act Repeal Bill had its First Reading https://bills.parliament.nz/v/6/9faa9e21-c7a9-4433-7e32-08dc003a05e3?Tab=history

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FSC release Climate Scenario Narratives and Guidance for the Financial Sector

The Financial Services Council NZ (FSC) have released the Climate Scenario Narratives and Guidance for the Financial Sector report, developed in conjunction with EY. The report is designed to support the sector in the reporting of climate-related risks and opportunities under the framework developed by the External Reporting Board (XRB). The report can be downloaded from the members area of the FSC website.

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