New Zealand’s regulatory chief warns market

August 5 2019 by InsuranceAsia News Staff

Rob Everett, chief executive of New Zealand’s Financial Market Authority, has warned of complacency at insurers and banks following the fallout in the aftermath the Australia’s Royal Commission on financial services.

Speaking last week at the launch of a new financial integrity self-assessment tool for financial services firms developed by anti-corruption group Transparency International New Zealand, Everett said he had expected banks and insurers would have acted long before the FMA and Reserve Bank of New Zealand began their own review.

Everett believes they “done enough to create the engineering, the model that would address risks that they posed to their own customers and to confidence in the entire financial system”.

“The banks and life insurers have had years to prepare for this,” said Everett. “I found it hard to comprehend that the industry didn’t get its act together and have a perfect story to tell.”

Tougher regulations and punishments are expected to come and life insurers – in particular – have been singled out.

New Zealand’s finance minister Grant Robertson said that while the country wouldn’t be carrying an Australia style inquiry – he commented that “Australia’s lessons are our lessons.”

MORE FROM: Legal/Regulatory