The conduct and culture of financial service providers has been under the spotlight of Governments and Regulators across the globe since the banking crisis in 2008.
FSC’s members make up 95% of New Zealand’s life insurance market, manage funds of around $50 billion and as such expect and welcome a high level of regulatory scrutiny as part and parcel of how we operate.
We are clear that we need to take the lead in lifting standards to deliver better outcomes for New Zealanders. We know that we don’t always get it right and we know that we cannot be complacent.
The Financial Services Council launched its first Code of Conduct which comes into effect on 1 January 2019. The Code, which is designed to sit alongside and complement existing regulation and laws, has nine standards which fall into three core objectives covering ethical, communication and consumer outcomes. There are penalties if the code is not adhered to which include fines of up to $100,000 or termination of membership.
We believe that this is just the beginning, and by working with Government and Regulators on initiatives such as the Financial Services Legislation Amendment Bill
, together we can deliver great consumer outcomes.