Legal and regulatory update for the life and health insurance sector

21 Dec 2023 - FMA warns of increase in fake product disclosure statement scams targeting New Zealanders https://www.fma.govt.nz/news/all-releases/media-releases/fma-warns-of-increase-in-fake-pds-scams/

21 Dec 2023 - The Taxation Principles Reporting Act Repeal Bill has been passed by Parliament. https://bills.parliament.nz/v/6/9faa9e21-c7a9-4433-7e32-08dc003a05e3?Tab=history

15 Jan 2024 - APRA retires prudential practice guides on the risk management framework for life and general insurers. https://www.apra.gov.au/news-and-publications/apra-retires-prudential-practice-guides-on-risk-management-framework-for-life

16 Jan 2024 - The Commerce Commission has received an application from Payments NZ Limited (Payments NZ) seeking authorisation to work with API providers and third parties to develop arrangements that, according to Payments NZ, will facilitate a more well-utilised, secure and innovative open banking framework. https://comcom.govt.nz/news-and-media/media-releases/2024/payments-nz-seeks-authorisation-to-further-develop-its-open-banking-framework

17 Jan 2024 - The Australian Prudential Regulation Authority (APRA) has released for consultation minor and consequential amendments to the superannuation prudential framework.  This consultation is open  until 28 February 2024. https://www.apra.gov.au/news-and-publications/apra-releases-consultation-on-minor-and-consequential-amendments-to

18 Jan 2024 - ASIC urges AFS licensees to register their financial advisers and provides a short extension to facilitate compliance. ASIC’s records show that as at 18 January 2024, 4,036 (26%) financial advisers who provide personal advice to retail clients on relevant products (relevant providers) are still not registered with ASIC.  https://asic.gov.au/about-asic/news-centre/news-items/asic-urges-afs-licensees-to-register-their-financial-advisers-and-provides-a-short-extension-to-facilitate-compliance/

23 Jan 2024 - The European Commission has determined that New Zealand has an adequate level of protection for personal data transferred from the European Union. Essentially ‘adequacy’ says that our legislation isn’t the same as Europe’s, but its outcomes are similar and can be trusted. https://privacy.org.nz/publications/statements-media-releases/new-zealand-is-adequate-and-we-couldnt-be-happier-about-itnew-news-page/

23 Jan 2024 - The Reserve Bank of New Zealand - Te Pūtea Matua has launched a consultation on activating debt to income (DTI) restrictions and loosening loan to value ratios (LVR) for residential lending. Consultation closes 12 March 2024.  They propose initially setting the DTI policy to allow banks to lend:

• 20% of their residential loans to owner-occupiers with a DTI greater than 6; and

• 20% of their residential loans to investors with a DTI greater than 7.

They are proposing easing the LVR settings at the same time as activating DTIs. They propose easing LVRs to allow:

• 20% of owner-occupier lending to borrowers with an LVR greater than 80%; and

• 5% of investor lending to borrowers with an LVR greater than 70%. 

https://www.rbnz.govt.nz/hub/news/2024/consultation-on-dti-and-lvr-settings

24 Jan 2024 - ASIC is implementing the Australian Government’s amendments to the approved principles for the administration of the financial adviser exam that were registered on 18 January 2024.  https://asic.gov.au/about-asic/news-centre/news-items/asic-incorporates-legislative-changes-to-the-financial-adviser-exam/

25 Jan 2024 - The RBNZ have released a bulletin that discusses the drivers of dysfunction in key NZ dollar financial markets in 2020, and their actions to support financial market functioning during this time. https://www.rbnz.govt.nz/hub/news/2024/in-retrospect-rbnzs-support-of-financial-market-functioning-at-the-onset-of-covid-19

29 Jan 2024 - The Australian Prudential Regulation Authority (APRA) has released a response on its proposed changes to the Economic and Financial Statistics (EFS) reporting standards and guidance. https://www.apra.gov.au/news-and-publications/apra-responds-to-consultation-on-updates-to-modernised-economic-and-financial

30 Jan 2024 - The Chief Ombudsman Peter Boshier says New Zealand must be even more open and direct if it is to improve its ranking as one of the least corrupt countries in the world. New Zealand slipped in the 2023 Transparency International Corruption Perception Index to 3rd place on 85 points, after being ranked 2nd equal with Finland on 87 points in 2022. https://www.ombudsman.parliament.nz/news/corruption-perception-results-nz-must-be-more-open-chief-ombudsman

30 Jan 2024 - Reserve Bank Chief Economist Paul Conway delivers speech on the importance of quality research and data. https://www.rbnz.govt.nz/hub/news/2024/the-importance-of-quality-research-and-data

31 Jan 2024 - The Australian Prudential Regulation Authority (APRA) has released the Annual Superannuation Bulletin for the year ended 30 June 2023 and the Quarterly Superannuation Industry publication for the September 2023 quarter. https://www.apra.gov.au/news-and-publications/apra-releases-annual-superannuation-bulletin-for-202223-financial-year-and

31 Jan 2024 - The Australian Prudential Regulation Authority (APRA) has published its supervision and policy priorities for the first six months of 2024. https://www.apra.gov.au/news-and-publications/apra-outlines-2024-supervision-and-policy-priorities

31 Jan 2024 - The Australian Federal Court has declared Westpac Banking Corporation (Westpac) engaged in unconscionable conduct in October 2016 when executing a $12 billion interest rate swap transaction, the largest of its kind in Australian financial market history. Westpac will pay the maximum penalty of $1.8 million in relation to the conduct, together with $8 million for ASIC’s litigation and investigation costs. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-011mr-court-declares-westpac-engaged-in-unconscionable-conduct-for-interest-rate-swap-maximum-penalty-applied/

31 Jan 2024 - ASIC has published a summary document on Understanding and Responding to Identification Challenges for First Nations Consumers following a November workshop. https://asic.gov.au/about-asic/news-centre/news-items/asic-releases-summary-document-for-indigenous-financial-services-framework-workshop/

31 Jan 2024 - The Government announced plans to reform the Financial Markets (Conduct of Institutions) Amendment Act (CoFI) and the Credit Contracts and Consumer Finance Act (CCCFA). https://www.mbie.govt.nz/about/news/reducing-barriers-for-financial-services/

31 Jan 2024 - ASIC publishes keynote address by ASIC Chair Joe Longo at the at UTS Human Technology Institute Shaping Our Future Symposium on how current regulation around AI may not be sufficient. https://asic.gov.au/about-asic/news-centre/speeches/we-re-not-there-yet-current-regulation-around-ai-may-not-be-sufficient/

31 Jan 2024 - The Government will reform financial services regulations, with Commerce and Consumer Affairs Minister Andrew Bayly saying they will move to a simplified model, with the RBNZ being the prudential regulator, and a single conduct regulator being the FMA. To achieve this, conduct oversight of the Credit Contracts and Consumer Finance Act (CCCFA) currently performed by the Commerce Commission will transfer to the FMA. They will move  to one conduct licence overseen by the FMA, and one prudential licence by the RBNZ. Mr Bayly also announced plans to reform the Financial Markets (Conduct of Institutions) Amendment Act (CoFI) and the CCCFA. https://www.beehive.govt.nz/release/reducing-barriers-financial-services

31 Jan 2024 - Hon Andrew Bayly's speech at Financial Services Council Outlook 2024 is released. https://www.beehive.govt.nz/speech/speech-financial-services-council-outlook-2024

1 Feb 2024 - APRA publishes Deputy Chair Margaret Cole's speech to the Conexus Chair Forum Sorrento including info on cyber risks and operational risks. https://www.apra.gov.au/news-and-publications/apra-deputy-chair-margaret-cole-speech-to-conexus-chair-forum-sorrento

1 Feb 2024 - ASIC publishes address by ASIC Deputy Chair Sarah Court at the Connexus Super Chair Forum on their 2024 enforcement priorities in the superannuation sector. https://asic.gov.au/about-asic/news-centre/speeches/asic-s-2024-enforcement-priorities-in-the-superannuation-sector/