FSC welcomes FMA report

22 March 2018

FSC welcomes FMA report

The FSC has welcomed the report released today by the Financial Markets Authority on insurance replacement business and conflicted conduct, and the useful spotlight it puts on behaviour in some parts of the industry.

“We welcome the report for shining a light on conduct, disclosure and incentives. There’s no avoiding the fact that the findings are not great and that in some areas the industry needs to do better”, said FSC CEO, Richard Klipin.

“It’s important to note though that the fundamentals of the industry are sound, and that the small sample of advisers that this report is based on may not be indicative of the thousands of financial advisers who every day do great work for their clients improving their financial outcomes.

“The report notes the importance of the current changes proposed through the Financial Services Legislation Amendment Bill and the Financial Advice Code Working Group. We strongly support these changes and will continue to work closely with Government and the FMA to ensure they deliver the best outcomes for New Zealanders.

“Legislation and regulation is part of lifting standards across the sector, but so too is industry self-regulation. The FSC takes service and consumer outcomes seriously, and the FSC Code of Conduct (due to launch in July) will be a significant step forward in continuing to lift standards within the industry.

“As the voice of the financial services industry, the FSC continues to advocate for a strong and robust financial services industry that serves the New Zealand community and delivers strong and sustainable consumer outcomes.

“As an industry we’re in a constant state of improvement and there is a significant work programme already underway to help ensure amongst other things that this type of behaviour is stamped out. This report is an important reminder of the need for this work to remain a priority”, Mr Klipin concluded.

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