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.
Fidelity Life announces growth plans
Campbell Mitchell, Fidelity Life Chief Executive, has told delegates at the Engage Conference the company’s intentions to grow to a $1 billion company.
Campbell Mitchell, Fidelity Life Chief Executive, announced the company’s intentions to grow to a $1 billion company in eight years time. Mitchell was speaking to delegates at Fidelity Life’s Engage Conference in Auckland.
Fidelity Life was the fastest growing life insurer in New Zealand in the period ending September 30, with 150% growth in new business year-on-year across the last two quarters.
More news:
mySolutions webinar 'New tools from Quotemonster' 13 November
nib release their top 5 health claims for August 2024
FSC Life Insurance Special Interest Group Networking Event is on 10 December
Tony Vidler says advisers need constant reinvention of value and service
TAP announce partnership with Bizcap
BNZ has announced a strategic partnership with BlinkPay
BNZ has made a net profit of $1.506 billion for the 12 months to 30 September 2024
Over half of the country's mortgages are due to have interest rate reset within six months
Survey finds 70% of millennials believe they may never be able to buy a home
The cost of living for New Zealand households has risen 3.8% over the past year
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.”
More news:
TSB to pay $2.47m penalty for CCCFA breaches
BNZ has implemented the Payments NZ Account Information API v2.1 standards
Relationship Charter Survey finds strong relationships between RBNZ and firms
FSF Conference 2024 is on 22 October
Two KiwiSaver schemes – Sharesies and Koura Wealth report larger losses but make revenue gains
Government has repealed parts of the Credit Contracts and Consumer Finance Act
The government has repealed some parts of the Credit Contracts and Consumer Finance Act (CCCFA). Commerce Minister Andrew Bayly said of the affordability regulations introduced to the CCCFA in December 2021
“These regulations created unnecessary compliance costs and are an excessive barrier for lending. And worse, the regulations failed to protect the most vulnerable Kiwis – the very people they were intended to safeguard”
The time to process loans increased substantially, with Minister Bayly saying some lenders had told him small loans that used to take two hours to process took up to eight hours to process under the new regulations.
Additional reforms to the act include:
Improving dispute resolution to better protect consumers.
Exempting councils from the CCCFA so they are able to offer low-risk financial products to help households improve their energy efficiency by installing heat pumps and insulation.
Removing duplicate reporting requirements.
We hope that the relaxation on small loans flows through to banks being able to offer more flexibility to people with what amounts to a timing issue, rather than a lending issue. But we know that lending rules are notoriously difficult to manage. This is one of the reasons why aspects of the wider programme are of more interest.
Minter Ellison puts the changes into context within a program of changes to financial law and regulation which the government has planned.
Of particular interest are the changes in supervisions structures with the responsibility for administering the CCCFA moving from the Commerce Commission to the Financial Markets Authority. Lending is a financial product, and we think the Financial Markets Authority, with conduct supervision responsibilities and, essentially, all the other financial products, is probably a good home for this law from an ongoing regulation perspective.
More daily news:
Jon-Paul Hale highlights issues with digital documents
The Ombudsmen FSCL and the IFSO Scheme are in merger talks
Empower Women breakfast at the National Strategy for Financial Capability Partners Conference
Andrew Dentice urges more discussion on the benefits of open banking
Pharmac outlines funding plans for continuous glucose monitors for type 1 diabetics
We’re back!
The Chatswood and QPR team are back in the office and looking forward to everything we have planned this year. Although we are keeping some great new developments under wraps, we can drop some hints of what’s coming your way this year.
We hope you had a lovely break and got to enjoy some sunshine and had a chance to relax. The Chatswood and QPR team are back in the office and looking forward to everything we have planned this year. Although we are keeping some great new developments under wraps, we can drop some hints:
· People with an interest in data and statements of advice for KiwiSaver and Home Loans should drop us a line
· How do you check if a plan you have put together is reasonable? Ask us to put you in the beta test group for Checkmonster
Things already live that you may want to check out again now you’re back:
1. Research: you should check out the stand-alone head to head comparison with access to more than 50 legacy products now rated and more joining them every week
2. If you aren’t using Advicemonster to make your production of SOAs better, quicker, and more robust, then we’ve added more reasons to help you make up your mind
3. Want to make sure your compliance is in good shape? Maybe add a copy of our outsource provider statement and information security bulletins to your compliance file
Hit us up with any questions you have. And if you have any thoughts on training you would find useful, please let us know here or here.
Lifetime group acquires an advisory firm specialising in employee benefits
The Lifetime Group, a Christchurch-based, full-service financial advisory firm, has bought Protection Solutions, which specialises in employee benefits schemes.
The undisclosed transaction price includes cash and shares, with Grant Uridge and Thurl Gibbs of Protection Solutions both taking a 4.5% stake in Lifetime.
The merger expands Lifetime’s capabilities in personal and business insurance advice, with Protection Solutions currently having 13 group schemes on its books.
More daily news:
The Adviser Platform (TAP) is offering a 50% discount for six months
AM Best will be holding its Insurance Market Briefing – Auckland on November 16
ASB receive the 2023 Make it Easy Award for their Easy English guides
FSC request members participate in their member satisfaction survey
ANZ named Canstar's 2023 Bank of the Year in the Agribusiness category
Covid-19 cases spike across the country, possible we are at the start of a new wave
How many adviser associations does NZ need?
Following The Finance Brokers Association of Australia’s (FBAA) news that they plan to open a local branch in New Zealand in February, Katrina Shanks has questioned whether there is room for another adviser association.
Peter White, FBAA’s chief executive has said the as yet unnamed association will offer mortgage advisers a “stronger voice and representation in front of regulators and politicians” as well as giving “greater awareness and understanding to borrowers as to why they should be using a mortgage adviser to get their home loan rather than just going direct to the banks”. White also promises to deliver more professional development events relevant to the sector.
While Financial Advice NZ won’t release the number of members who are mortgage advisers, she says they are already specifically catered to with services including a ‘Seeking Adviser’ campaign on the website, an online learning management system, a range of mortgage tools and training on areas such as regulation and legislation.
More daily news:
MAS becomes a Toitū net carbonzero certified organisation
BNZ report statutory net profit of $1.509 billion, up 6.7% on the previous year
Almost two hundred million dollars was lost by kiwis to scams in the last year
Next week is Fraud Awareness Week and the SFO is running a webinar series
The Serious Fraud Office (SFO) is running a series of webinars for Fraud Awareness Week, which runs from 12 – 18 November 2023.
We have written about how scams are on the rise in NZ and how the NZ banking sector has announced new measures in the fight against fraud. Now a recent Grant Thornton New Zealand survey has found only 41% of business owners, leaders and decision makers undertake specific planning for fraud risk, so there’s no better time than now to increase your knowledge in this area. The Serious Fraud Office (SFO) is running a series of webinars for Fraud Awareness Week, which runs from 12 – 18 November 2023.
Monday 13 November 12.00-1.00pm
Cyber-enabled fraud - this session will explore what cyber-enabled fraud is and some of the ways you can lock your digital door to fraud.
Wednesday 15 November 12.00-1.00pm
Fraud and Artificial Intelligence - hear from two AI specialists about how fraudsters can use AI to commit their crime as well as how AI can be used to help prevent and detect fraud.
Friday 17 November 12.00-1.00pm
True Crime: SFO case study - hear from two of the SFO team about cases they have worked on and how the lessons they learned can help prevent similar financial crimes occurring again.
To register to attend the webinars, contact the SFO at counterfraud@sfo.govt.nz.
More daily news:
Katrina Shanks writes about how to work out the best investment approach
FBAA say lifting the number of mortgages written by independent advisers is top priority
TSB appoints Kerry Boielle as new CEO
Westpac chief executive Catherine McGrath says principles-based legislation is a good thing
Legal and regulatory update for the life and health insurance sector
24 May 2023 - APRA released Australian private health insurance statistics for March 2023 https://www.apra.gov.au/news-and-publications/apra-releases-quarterly-private-health-insurance-statistics-for-march-2023
24 May 2023 - Office of the Privacy Commissioner’s (OPC) latest Insights Report shows four key insights for small businesses:
Understanding privacy does not necessarily translate into good privacy practices.
What business sector you are in can increase your privacy risk.
Businesses need systems for giving people their own information, promptly.
Whether a business is big or small, the privacy breach risk is about the same.
https://privacy.org.nz/publications/statements-media-releases/new-news-page-7/
25 May 2023 - The Privacy Commissioner has outlined expectations around organisations using generative artificial intelligence (AI)
1. Have senior leadership approval
2. Review whether a generative AI tool is necessary and proportionate
3. Conduct a Privacy Impact Assessment
4. Be transparent
5. Develop procedures about accuracy and access by individuals
6. Ensure human review prior to acting
7. Ensure that personal or confidential information is not retained or disclosed by the generative AI tool
https://privacy.org.nz/news/media-releases/privacy-commissioner-outlines-expectations-around-ai-use/
26 May 2023 - RBNZ confirmed its proposal to ease mortgage loan-to-value ratio (LVR) restrictions. From 1 June 2023 LVR restrictions will be eased, from: 10% limit for loans with LVR above 80% for owner occupiers, and 5% limit for loans with LVR above 60% for investors. To: 15% limit for loans with LVR above 80% for owner occupiers, and 5% limit for loans with LVR above 65% for investors. https://www.rbnz.govt.nz/hub/news/2023/05/lvr-restriction-easing-confirmed
29 May 2023 - On 2 June, the Reserve Bank of New Zealand will publish new statistics from the monthly New Credit Flows Survey, making more data available to all users. The New Credit Flows Survey collects data from registered banks on new lending during the month and its associated weighted average interest rates. They are also looking at expanding publications this year from financial reporting in the Bank Balance Sheet survey (BBS) and Loan to Valuation - New commitments (LVRNC). https://www.rbnz.govt.nz/en/regulation-and-supervision/oversight-of-banks/resources-for-banks/surveys/new-credit-flows
29 May 2023 - FMA hold final online session 8 June to provide an in-depth view of the questions that will be asked in the annual FAP Regulatory Returns. https://financialmarketsauthority.cmail19.com/t/r-l-ttjttlly-btuitpxk-u/
30 May 2023 - Minister of Commerce and Consumer Affairs, Hon Dr Duncan Webb, February 2023 diary released with the following potential financial services sector related meeting noted:
• 4 Apr 2023 – Meeting with Commerce Commission
• 5 Apr 2023 – Pre-record of speech for the Financial Services Complaints Ltd Conference opening
• 5 Apr 2023 – Meeting with Banking Ombudsman Scheme (Chair, Banking Ombudsman)
• 5 Apr 2023 – Meeting with Financial Services Complaints Ltd (Chair, Financial Ombudsman, CEO, Case Management Team Leader)
• 19 Apr 2023 - Meeting with The Cooperative Bank (CEO)
• 19 Apr 2023 - Videoconference with ASB (CE)