FSC gets strategy 'reset'

The Financial Services Council’s newly revealed strategy is not so much a change as an evolution, its chief executive says.

Wednesday, May 3rd 2017, 6:00AM 1 Comment

by Susan Edmunds

The organisation has been working through a year of rebuilding after it lost many of its members in the fallout of a controversial report it requested from MJW, into insurance commissions.

New chief executive Richard Klipin, who has now been in the job six months, said some of the members who quit had come back, while others were still in the process. The FSC now has 15 member companies and 14 associate members, down from 21 and 18, respectively.

He revealed the refreshed FSC strategy to its members in a recent update.

The FSC should be a trusted voice of the financial services sector to benefit all New Zealanders, he said, showcase industry excellence, develop a sustainable business model, bring the industry together with data and knowledge for the benefit of all New Zealanders, and should develop a community of professionals to better understand and serve the needs of consumers.

The FSC wanted to achieve strong and sustainable consumer outcomes and build professionalism and trust in the industry, through the FSC's code of conduct. This is currently in draft form and steering and working committees are developing it.

Klipin said there was still work to do to achieve the aim of FSC as a strong voice for the sector.

"This is almost a reset, a clarification of focus and purpose."

Policy and advocacy was a key function for the FSC, particularly as new legislation was worked out and things such as superannuation reform were devised. Klipin said FSC had to be an authentic voice to make its case to people making policy and decisions. "That takes a lot of time."

It would work alongside adviser bodies, he said.

Klipin said a number of subcommittees had been set up to serve the interests of the different sections of the FSC's membership.

The FSC now shares core functions with Workplace Savings and Klipin works across both organisations. The two are holding their first joint conference this year.

Klipin said if the FSC achieved its aims it would result in a growing and engaged membership, which was good for all stakeholders.

Comments from our readers

On 3 May 2017 at 11:20 am R1 said:

"The FSC should be a trusted voice of the financial services sector to benefit all New Zealanders, he said, showcase industry excellence, develop a sustainable business model, bring the industry together with data and knowledge for the benefit of all New Zealanders, and should develop a community of professionals to better understand and serve the needs of consumers.

The FSC wanted to achieve strong and sustainable consumer outcomes and build professionalism and trust in the industry, through the FSC's code of conduct."

Is this a misprint? Is certainly made me laugh but I suspect some will believe this propaganda.

If this is not a misprint then they surely would be advocating for truly putting the clients' interests first in providing financial services and advice. And, if they are really serious about consumer interests, they would be advocating a fiduciary standard of conduct for all their staff providing advice; not QFE exemptions. A Tui's moment.

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