ISI reborn as Financial Services Council

The Investment Savings and Insurance Association has been replaced by the Financial Services Council, which will play a different role in the newly-regulated marketplace.

Wednesday, March 14th 2012, 6:00AM

by Niko Kloeten

The FSC, which was officially launched at a function in Wellington last night, represents most of New Zealand's large life insurance and fund management companies.

It has 20 full member and 18 associate member companies managing more than $60 billion in savings and providing other financial services to more than 1.8 million New Zealand investors and policyholders.

Members of the now-defunct ISI voted last year to create a new organisation that would focus on information and lobbying instead of the ISI's role of industry self-regulation.

FSC chief executive Peter Neilson said at the time that members wanted to create a "highly influential" pan-industry organisation that would give the financial services sector an "800-pound gorilla".

Adviser groups have reacted favourably to the "super group" concept, although talks haven't progressed to any formal alliances so far.

The ISI had served the sector well but "now is the time for a new approach and a new emphasis," FSC independent chair Dame Jenny Shipley said at the council's launch last night.

"The FSC members now overwhelmingly agree that there is a much bigger job to do and will be seeking opportunities to work with others in the sector to increase our effectiveness within the resources available.

"With the recent loss of confidence in the financial services sector, the move to principles-based rather than industry-specific regulation, and the fallout following the Global Financial Crisis, FSC members believe this is the right time to establish an effective pan financial services sector organisation."

The FSC is working on a number of projects including research into longevity and underinsurance, and a study looking at the future of long term savings and KiwiSaver.

"We think this work will encourage an informed conversation on the options we have for the future while providing greater security for retirement incomes than currently exists," Neilson said at the launch.

"The findings from these projects will be made available during the next three months."

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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