Media

We’re taking the FMA/RBNZ conduct and culture review extremely seriously

At Fidelity Life we’re committed to a model where customers’ interests come first. New Zealanders are under-insured and independent financial advice has significant benefits for the financial health and well-being of New Zealanders.

While we’re always working on our conduct and culture, there’s always more that can be done. Our focus is on setting up our business for a sustainable and successful future with the customer at the centre of everything that we do.

The Financial Services Council, of which Fidelity Life is a member, has led the life insurance industry’s response to the FMA/RBNZ review – below is their media release.

Media release

29 January 2019

Industry acting on culture and conduct report

The Financial Services Council welcomed the release of the Financial Markets Authority (FMA) and Reserve Bank of New Zealand (RBNZ) report on Life Insurer Conduct and Culture today and will work with its members in the sector to act on its recommendations.

“The life insurance industry accepts there are improvements to be made in a range of areas outlined by the FMA and RBNZ in the report”, said Richard Klipin, CEO of the Financial Services Council.

“Conduct, culture and ensuring great consumer outcomes is paramount. We also accept that action in some areas was not taken as quickly as desired and that has been a source of frustration for the FMA and RBNZ.

“We will now work through the issues highlighted in the report and respond to the FMA and RBNZ within its timeframes with our action plans.

“We look forward to continuing constructive dialogue between regulators and the industry so that we can drive improvements and focus on providing the best possible outcomes for New Zealanders.

“The financial services sector plays an important role in the prosperity of New Zealand and we are an industry that is entrusted to grow, manage and protect the wealth of Kiwi’s. As such, we welcome and expect scrutiny and are committed to serving New Zealanders in a fair and transparent way,” said Klipin.

In the past 12 months the industry has initiated a number of important steps relating to improving culture and conduct including the adoption of the FSC code of conduct by all our members, responding to concerns about soft commissions by ending overseas conferences, and strongly supporting the progression of the Financial Services Legislation Amendment Bill.

“We are encouraged that the report did not find evidence of systemic customer harm, and that the regulators highlighted the good work of the many thousands of front line and claims staff and their strong focus on delivering good consumer outcomes.

“Finally I’d like to thank the regulators for their high-quality and robust work on this report and ongoing engagement with the industry,” concluded Klipin.