Fidelity Life open applications for training programmes

Fidelity Life has opened applications for Advice Masters, Professional Pathways, Practice Manager Masterclass and Career Connect.

Applications are open for Advice Masters, Fidelity Life's intensive training and personalised professional development programme designed for experienced business owners in the financial services industry. The programme encompasses a wide range of topics: M&A; capital raising/funding strategies; high performance for business leaders; leading high performing teams; business strategy design and execution; governance; board craft; director skills and sustainability; business efficiency; technology and AI. The 30 available spots are by invitation only – interested people can talk to their business manager or apply here.

Professional Pathways is Fidelity Life's customisable extended training and development programme designed for motivated advisers, who are dedicated to growth and achieving their business goals. Over a 9-month period the programme will take participants through key topics – developing their business; advice and planning; business sales and growth; business efficiency. The programme consists of skills based workshops, self-paced learning through courses, resources and quizzes, online webinars and interactive online workshops.

Practice Manager Masterclass are targeted at admin staff and will help to improve workflow and productivity.

Career Connect is Fidelity Life's comprehensive education and skills programme designed to develop the next generation of financial advisers. Career Connect equips participants with relevant qualifications, practical skills and knowledge, and industry connections. The 2025 intake will commence in May and will run for 6 months. Applicants will be invited for an interview and the fee for the programme is approximately $1650.

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Southern Cross Health Society Group annual results released

Southern Medical Care Society Group has shared their annual results for the year ended 30 June 2024. By the numbers:

• Group deficit of $88.2 million after tax. $43.1 million of the deficit is attributable to a change in international financial reporting standards introduced this financial year. The balance of the deficit is driven by higher claims costs from a high inflationary environment combined with high member demand for private health services, particularly in the second half of the financial year.

• Group reserves of $470.7 million.

• Claims paid at a rate of $6 million per business day (up from $5.2 million in FY23).

• 15,196 net new members, with total membership now at 955,301.

• This represents 60% of the New Zealand health insurance market by customer numbers but 71% per cent of the value of all health insurance claims paid.

• 99% of claims were submitted electronically.

Southern Cross Health Insurance

• Reported a deficit of $99.1 million.

• Paid $1.498 billion in claims from $1.605 billion received in premiums.

• Claims costs increased 15% on FY23 (up 13.9% when adjusted for member growth).

• Premiums increased 9% on FY23 (up 6.6% when adjusted for member growth).

• 93.4 cents paid in claims from every dollar received in premiums (compared to an industry average excluding Southern Cross) of 73 cents.

• Operating costs grew by 4%, less than inflation.

• 3.2 million claims in FY24

• 50% of members claimed over the financial year.

• 39,326 virtual GP consultations with Care HQ.

• 4,635 annual health check-ups with MedPro.

• 4,016 online mental health sessions with Raise.

• Net promoter score of 53.7%.

 Nick Astwick, Chief Executive for Southern Cross Health Society said

“We have never been in more demand by our members as they prioritise their health needs, largely in the private system. In 2019 33% of our membership claimed, last year it was 50%.”

“The cost of claims in 2024 was steep and rapid, driven by a combination of price, volume, and the mix of claims. The growth in the volume of claims results from an increase in the number of members claiming, the frequency, and claims being made for more expensive procedures.”

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ANZ add BlinkPay to their approved third party payment providers

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Committee recommended changes to the Contracts of Insurance Bill

Travis Hamilton says Total and permanent disability (TPD) cover is being underestimated

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Wayne Langford appointed to the Board of the Mental Health and Wellbeing Commission

Legal and regulatory update for the life and health insurance sector

28 Aug 2024 - The Australian Prudential Regulation Authority (APRA) today announces some changes to its internal structure designed to ensure it remains equipped to deal with emerging and future challenges. The changes will support APRA’s updated strategic priorities. The most significant change will see APRA move to having its five industry supervision groups being managed in two supervision divisions instead of the current three frontline supervision divisions – Banking, Superannuation and Insurance (encompassing general, life and private health insurance). From 2 September, the two frontline supervision divisions will be:

• a General Insurance and Banking division; and 

• a Life Insurance, Private Health Insurance and Superannuation division. 

https://www.apra.gov.au/news-and-publications/apra-announces-internal-reorganisation-to-better-support-strategic-priorities

28 Aug 2024 - The Australian Prudential Regulation Authority (APRA) has published its latest Corporate Plan outlining how it will maintain the strength and stability of Australia’s banks, insurers and superannuation trustees over the next four years. https://www.apra.gov.au/news-and-publications/apra-outlines-new-priorities-2024-25-corporate-plan

29 Aug 2024 - Climate reporting entities (CREs) with reporting periods ending 31 March 2024 have been lodging their climate statements on the Climate-related Disclosures Register. The FMA will be releasing a Climate-related Disclosures Monitoring Report in November this year, detailing their key monitoring findings and areas they would like CRE's to focus on for the next reporting period. https://www.fma.govt.nz/library/guidance-library/crd-monitoring-plan-2023-2026/

29 Aug 2024 - As part of Sorted Money Month, the FMA have released a series of videos designed to kickstart conversations around money. https://www.fma.govt.nz/library/campaigns/sorted-money-month-2024/

29 Aug 2024 - The FMA is hosting two Fairness Research roundtables with banks, non-bank deposit takers, insurers, fund managers, and financial advice firms to discuss fairness in financial services. The first event, with larger-sized firms, explored key topics including the interpretation of fairness from both consumer and provider perspectives, the role of governance in promoting fair outcomes, and future trends that may impact fairness in the sector. A second event, with smaller-sized firms, takes place in September. https://www.fma.govt.nz/news/all-releases/media-releases/understanding-fairness-in-financial-services

29 Aug 2024 - All licensed Financial Advice Providers must submit an annual regulatory return as part of licensing conditions. 31% have already submitted their regulatory return during July and August. The submission period will close on 30 September 2024. Regulatory returns should be submitted through the FMA Online Services portal. https://www.fma.govt.nz/business/online-services

29 Aug 2024 - In September The FMA will be publicly consulting on the questions they propose to ask in the regulatory returns for financial institutions.  This consultation will be open for a 6-week period from 16 September 2024 to 25 October 2024. 

29 Aug 2024 - The annual Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Conference is being held in Wellington this year, on Wednesday 30 October and Thursday 31 October.  Hosted by the New Zealand Financial Intelligence Unit and The Association of Certified Anti-Money Laundering Specialists, the theme of this year’s conference is “Shifting Paradigms: Navigating the Future of Financial Crime”. https://www.police.govt.nz/fiu-acams-conference-2024

NZFSG announce new non-executive director

The NZ Financial Services Group (NZFSG) has appointed Thérèse Singleton as a non-executive director, with the aim of enhancing NZFSG’s support for advisers by improving compliance, risk management and strategic operations. Singleton is currently the chief operating officer at insurance company Ando and is a member of the NZ Financial Advice Code committee.

Brendon Smith, board chair of NZFSG said

“Thérèse's extensive knowledge and exceptional track record in both the financial and insurance sectors make her an invaluable addition to our board.

Her insights will be pivotal as we continue to navigate through evolving regulatory environments and strive to set new standards in adviser services.”

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The FSC Awards 2024 have been announced

Nominations and entries to the FSC Awards 2024 have opened. There are eight categories, each open to FSC members only, with the exception of the 'Contribution to Community' Award which is also open to registered not-for-profit organisations and charities.

• Chair’s Award for Services to the Industry

• Team of the Year Award

• Emerging Trailblazer Award

• Contribution to Community

• Workplace Savings Award

• Excellence in Sustainability Practices

• Excellence in Governance

• Excellence in Wellbeing and Inclusion

Entries and nominations close on 30 June 2024, with the awards being presented at the FSC Awards Dinner on Wednesday 4 September 2024 at the Cordis Hotel, Auckland.

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Fidelity Life and Kaplan Professional join together to deliver Career Connect training

Fidelity Life has partnered with Kaplan Professional to deliver their Career Connect financial adviser training programme. Kaplan Professional will join as the programme’s education provider, in conjunction with Massey University. Kaplan Professional will fund a new Women in Finance Scholarship, to join Fidelity Life’s existing six scholarships.  

Applications are open for Career Connect’s 2024 intake, with 30 places, including 7 scholarships, available. The programme runs from May until December 2024.

The scholarships available are:

• Women in Finance scholarship brought to you by Kaplan Professional, designed to assist female applicants to become financial advisers

• Rural scholarship brought to you by FMG, designed for applicants with a rural connection

• Pounamu scholarship, designed to assist Māori applicants

• Kōwhai scholarship, designed to assist Pasifika applicants

• Rāngi Po scholarship, designed to support underrepresented identities in our industry.

• Toe Toe scholarship, designed to recognise outstanding young applicants.

• Pāua scholarship, designed to recognise outstanding applicants who demonstrate excellence.

Kaplan Professional CEO Brian Knight said

“Programs like Career connect provide the ideal launchpad for a bright future in financial advice, so we are delighted to collaborate with Fidelity Life on what we believe is a terrific initiative to strengthen New Zealand’s talent pipeline.”

“We also remain steadfast in our commitment to encouraging and promoting diversity within the industry, so we are thrilled to be able to provide a scholarship for women in every intake of the program.”

There is a free online career evening on March 19 where those interested can find out more about becoming a financial adviser, what being a financial adviser is really like and how Career Connect can support you to gain the qualifications and skills necessary to become a successful financial adviser.

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Kordia study highlights toll cyberattacks take on New Zealand's large businesses

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

Q&A with Karty Mayne from Rosewill Consulting

We had the pleasure of talking to Karty Mayne, Director and Compliance Consultant at Rosewill consulting.

What services does Rosewill Consulting provide?

Rosewill Consulting was set up with a mission to make compliance sexy! If we don’t think it is who will!

We provide Licensing and Compliance Services for financial services businesses. We also conduct independent audits and compliance reviews and provide specialist training. We have an online compliance and training system that has an extensive library of up-to-date professional development material.

What do you see as areas of focus in 2024?

Here are my top three…

1. Newly licensed entities, such as Financial Advice Providers, Head Groups and other types of licensees will need to have a strong focus on implementation. Being regulated requires creating a workplan and delivering on it. Initial policies and procedures may have design flaws or not be sufficiently robust so this is an important time to make those key adjustments.

2. On a wider scale, the world is facing ongoing increases in the nature and volume of cyber-attacks. Regulators such as the FMA have published a lot of guidance on this but from our experience regulated entities still need a lot of help in this area.

3. The pace of regulatory change hasn’t slowed up at all. 2024 will introduce new obligations such as additional AML/CFT Regulation, Conduct Licensing, Deposit Takers Act and the review of the Insurance contract law to name a few. Plus, the Coalition government will surely be adding to this list.

Can you tell us a little bit about yourself and why you decided to start up Rosewill Consulting?

I was initially sceptical about moving into a risk and compliance role. However, I quickly learnt the importance of the role and the value it can add across an organisation. My time as a Regulator was an apprenticeship into all aspects of issues within financial services and gave me a broad insight to the challenges of all businesses, large and small. When I left, I wanted to share back what I had learnt to help strengthen the industry and provide a plain English perspective on governance, risk and compliance. 

What area of compliance do you think Financial Advice Providers (FAPs) need the most help with? Do you see any changes to this with the new government coming in?

From our experience, most FAPs and their advisers still don’t really know the extent of their new regulatory obligations. I expect that the FMA will start to publish guidance to assist FAPs with implementation and help them mature their approach to complying with the regime. The Conduct Licensing is a great addition for New Zealand as it helps us lift our game for product providers and is great for consumers. Hopefully, the government has other priorities and lets the industry get on with meeting the fair conduct principles.

Could you tell us a bit about what your compliance and governance courses cover?

Over the last few years, we have been running course and coaching new Compliance Officers. Often the person has been thrown in the deep end and needs to have both the theoretical and practical understanding of their role. This year we added a focus on oversight and ran practical governance and compliance courses. The blend of running both together means that the business owners/directors can work through responsibilities with their compliance person and come with clear workplan for 2024.

What is one thing you wish someone had told you when you were younger?

To follow your passion and back yourself. I always knew that I wanted to run my own business and now wish I had got underway sooner. In saying that, I have loved every company I have worked for and each has taught me so much. It’s always the people around you who make the difference. 

What’s the last book you read?

I just finished “Resurrection Walk” by Michael Connelly. It is part of a series about the characters of the Lincoln Lawyer Mickey Haller and Detective Harry Bosch. These books are now series on Netflix and so I had a resurgence of interest in reading the latest books! Easy holiday reading!

 Disclosure: Quality Product Research Limited has used the services of Rosewill Consulting Limited and found them to be excellent.

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Legal and regulatory update for the life and health insurance sector

8 Nov 2023 - APRA releases minor amendments to Prudential Standard LPS 310 Audit and Related Matters (LPS 310) for life insurers https://www.apra.gov.au/news-and-publications/apra-releases-minor-amendments-to-standard-on-audit-and-related-matters-for

9 Nov 2023 - Minister of Finance, Hon Grant Robertson, October 2023 diary released with no potential financial services sector related meetings noted https://www.beehive.govt.nz/sites/default/files/2023-11/Ministerial%20Diary%20October%202023.pdf

9 Nov 2023 - Kirsten Patterson writes about bringing climate change to the fore in governance https://www.chapterzero.nz/news/sustainable-business-and-finance-climate-governance-hots-up/

Fidelity Life updates

Fidelity Life have been busy.

• They have launched a live chat function for advisers to be able to interact with new business and underwriting teams.

• Fidelity Life will launch product enhancements in November including

  • increasing maximum monthly benefit percentages from 110% to 115% of mortgage repayments;

  • new trigger to increase cover as a result of buying an investment property, holiday home, residential block of land, or co-signing a child’s mortgage;

  • new trigger for when financially supporting a child through first course of full-time tertiary education;

  • special events - removing the exclusion for customers with loading >100%

  • future events & insurability - removing the exclusion for customers with non-standard terms;

  • increasing the maximum monthly benefit for Key person new to business from $4,000 to $6,500 and for Key person for farmers from $5,000 to $9,000;

  • rolling out new repatriation benefit to all inforce and new on-sale life covers (except Survivor’s income cover), which reimburses up to the lesser of either 10% of the life cover sum insured or $20,000, helping to cover the cost of repatriating a body home;

  • changing our Trauma Stand-down start date to when the customer submits their completed application instead of when they finish underwriting.

• In coming months Fidelity Life will publish turnaround times for new business and call centre interactions.

• Fidelity Life are offering special relief to weather impacted customers in Queenstown, Gore and Southland who are facing financial hardship. They have offered a waiver of premiums for up to 3 months while keeping cover in place.

• Fidelity Life will roll out annual product re-accreditation training models in November, mandatory for all advisers working with Fidelity Life customers

• Fidelity Life have published a ‘Working together guide’

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Financial Advice NZ webinar 'How to best advise and manage forestry assets' 15 November

Cyber Smart Week runs from 30 October – 5 November

FinTechNZ Roundtable – Competition for Personal Banking Services on 27 November