Legal and regulatory update for the life and health insurance sector
27 Nov 2023 - APRA embarked on a multi-year pilot study with a selection of banks to gain insights into the status of data risk management. They have outlined their findings and highlight multiple areas where all APRA-regulated entities can improve their data management practices. https://www.apra.gov.au/news-and-publications/quality-data-as-an-asset-for-boards-management-and-business
28 Nov 2023 - The Financial Markets Authority (FMA) has cancelled Foundation Advice Limited (FAL)’s Financial Advice Provider (FAP) licence. FAL was an Auckland-based FAP offering advice on life and health insurance as well as KiwiSaver. The High Court put FAL into liquidation on 26 October 2023 following an application filed by the Inland Revenue Department. https://www.fma.govt.nz/news/all-releases/media-releases/fma-cancels-foundation-advice-limiteds-licence/
28 Nov 2023 - ASIC has issued guidance to financial advisers and Australian financial services (AFS) licensees about the new requirement for financial advisers to be registered. From 1 February 2024, financial advisers who provide personal advice to retail clients on relevant financial products must be registered with ASIC. https://asic.gov.au/about-asic/news-centre/news-items/asic-releases-guidance-on-the-registration-of-financial-advisers/
28 Nov 2023 - The FMA has agreed in principle to grant a class exemption for five years for each Climate Reporting Entity (CRE) which is in liquidation, receivership or voluntary administration from the duties in Part 7A of the FMC Act, comprising:
full relief for a CRE which is in liquidation (solvent or insolvent) and for managers that are CREs in respect of a registered scheme (or fund within a scheme) that is in wind-up.
deferral relief for up to two years for CREs in receivership or voluntary administration.
The effect of full relief is that the climate reporting duties are cancelled. The effect of deferral relief is that climate reporting duties are deferred but must still be complied with at a later date.