Conduct of Financial Institutions and Insurance Contract Law Reviews – Wellington

Conduct of Financial Institutions

Recent reports from the Financial Markets Authority and the Reserve Bank of New Zealand have highlighted failures in how conduct risk is managed in the financial sector, particularly among banks and life insurers.

The key problems that have been identified include:

• An imbalance of power between financial institutions and consumers.
• Some products are not designed with good customer outcomes in mind.
• Sales are prioritised over good customer outcomes.
• There are weak systems and controls to manage conduct risk.
• There is a lack of accountability to ensure good conduct.

MBIE are consulting on the conduct of financial institutions and have asked for feedback on a broad range of options that includes:

• Overarching duties to govern the conduct of financial institutions
• Executive accountability for breaches of any new legal duties
• A legal duty regarding how insurance claims are handled
• Measures to address conflicted remuneration
• Measures to ensure financial products are suitable for customers
• A robust enforcement package.

Insurance Law

The review's purpose is to ensure New Zealand’s insurance contract law is facilitating insurance markets that work well and enable individuals and businesses to effectively protect themselves against risk.

This session will have a short presentation on the reviews followed by a discussion including what the actuary’s involvement should be and whether NZSA should respond to the consultations.

Links to the MBIE reviews are below:

https://www.mbie.govt.nz/have-your-say/financial-institutions-conduct-review/

https://www.mbie.govt.nz/business-and-employment/business/financial-markets-regulation/insurance-contract-law-review/

Please note this is a members only event.