About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Thursday, January 30th, 10:51AM
Latest Headlines

Remuneration is not the big problem: Sovereign

Sovereign, like other members of the Financial Services Council, disagrees with parts of the controversial MJW report and says the focus for change needs to be around issues other than remuneration.

Tuesday, November 17th 2015, 3:13PM

“We want to focus on the key issues facing the industry rather than what’s said in a single report,” Chief Marketing and Strategy officer Chris Lamers says.

The two big issues around life insurance are under-insurance and replacement business.

Sovereign has commissioned its own report from NZIER on issues facing the life insurance industry. Lamers says it is based on “facts and data.”

“We believe now is the time for us to lead the discussion around regulation, rather than just hoping for the best.”

The Sovereign report is not based on “tradition or urban myth.” Also it looks across all channels to address the issues facing the industry.

“The key issue we see from industry data is the impact of replacement business that disadvantages the customer.”

In its submission on the review of the Financial Advisers Act Sovereign cautioned against wholesale changes and proposed “simple incremental enhancements to the regulatory regime.”

Any changes “should only be pursued if justified by evidence.”

Sovereign said it “does not condone inappropriate churn” and said “switching for the right reasons encourages product innovation and competition and supports a healthy insurance industry.”

It said it had seen “no evidence of a systemic problem”.

The FAA has adequate measures to address the aberrant behaviour by a minority of advisers, it says and this would come under a breach of the provision for an adviser to provide duty of care, diligence and skill as required under the act

“Sovereign believes that greater enforcement of the current regulatory tools will significantly reduce, if not eliminate,...inappropriate churn.”

It does support a level playing field on the disclosure of commissions.

Because registered financial advisers don’t have to disclose commissions this could encourage inappropriate churn.

Sovereign resigned its membership of the FSC last year, and will officially leave the council next month.

Lamers says Sovereign will respect the FSC’s embargo on the MJW report and talk about it next week after it is released.

Tags: FSC MJW Report

« MJW report deails: Cut soft commission, slash upfrontsFSC launches income protection campaign »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment



Printable version  


Email to a friend
Insurance Briefs

Southern Cross launches advisory group
Southern Cross Health Society has announced the establishment of a Māori governance advisory group in a first for New Zealand’s health insurance sector.

HealthLink and Konnect NET to merge
Healthcare technology companies HealthLink and Konnect NET are merging.

Fidelity scores top award for third consecutive year
Fidelity Life has been named 2019 Life Insurance Company of the Year by ANZIIF for the third consecutive year.

Suncorp invests in wellbeing
Suncorp New Zealand has now invested a total of $20 million into wellbeing bonds as part of its focus on identifying sustainable investment opportunities that can deliver positive community outcomes.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News


Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com