tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Sunday, November 3rd, 1:12PM

Insurance

rss
Latest Headlines

Crack down on life adviser commissions possible

The Australians are cracking down on how insurance advisers and brokers are paid, and New Zealand law firm Russell McVeagh says that a similar sort of probe may well follow here.

Friday, June 10th 2005, 11:09PM

by Rob Hosking

The Australian Securities and Investments Commission is looking at whether insurance advisers and brokers are fully disclosing any interest that may influence advice, as well as brokerage charges and commissions.

There is also a requirement under Australian law to offer suitable advice – what has become known as the “know your client, know your product” rule.

The Australian regulators are due to report shortly.

The New Zealand legal regime has some differences to the Australian set up – life insurance products which are categorised as having a savings component are deemed to be securities under the Securities Act, and there are already obligations on insurance brokers to declare any previous convictions under the Act.

However the Law Commission report on the industry released late last year, along with the Australian moves, recommends changes which would move New Zealand closer to the Australian approach.

Amongst other recommendations, the Law Commission recommended scrapping the Life Insurance Act and treating insurance brokers the same way as other financial intermediaries.

The commission also recommended encouraging insurance advisers and brokers to move away from commission-based remuneration to time or other methods, as well as a legal requirement that insures publicly reveal how they pay advisors and brokers.

“If the [Law] Commission’s propositions are accepted, it is likely that the appropriate New Zealand body would look to follow ASIC’s lead,” Russell McVeagh says.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

« Law Commission's recommendations sidelinedNew book: Risk Management and Insurance in New Zealand »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

nib launches tool to support women through menopause
nib has launched a new health management programme designed to support women as they navigate the stages of perimenopause and menopause.

Employees are wanting health and life insurance
A new survey shows potential employees what life and health insurance benefits, but less than a third of employers plan to offer such benefits.

Chubb Life makes changes to trauma benefit
Chubb Life has made a series of enhancements to its Assurance Extra and Assurance Extra Business policies, including the addition of a new Continuous Trauma Benefit,

Resolution Life gets new president
Global life insurance group Resolution Life has appointed Moses Ojeisekhoba as its new President.

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  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x