by Susan Edmunds
The Financial Services Council-funded Melville Jessup Weaver report into the life insurance industry recommended commission cuts similar to those enacted in Australia.
But the Financial Advisers Act review options paper, released by the Ministry of Business, Innovation and Employment shortly afterwards, said a ban or reduction in commission was not a “preferred option” at this stage.
AIA chief executive Natalie Cameron, who previously worked in Australia, said that was a pleasant surprise.
“The FAA options paper was quite different from the MJW report. It was really a welcome surprise.”
She said she had anticipated the options paper having more influence from the MJW report than it had. “[It was interesting] how little attention they had paid to the FSC debate on that. It validated my feeling that we could continue to put forward our own views directly and perhaps it’s not necessary to have the FSC do that on our behalf.”
She said New Zealand had a fundamentally different approach to regulation of financial services than Australia. “The regulators consistently beat their own drum and are not following Australia. That’s kind of a relief.”
AIA was one of a number of life insurers which use the adviser distribution channel and left the FSC because of the MJW report.
Work is under way to start another industry body to represent them.
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