FSC quadruples surplus as it regains strength

The Financial Services Council (FSC) has bounced back into health in the past year.

Wednesday, December 5th 2018, 6:00AM

The council has released its latest annual report, which shows it returned a surplus of $200,830 in the year to June, up from $48,436 a year earlier.

A big driver of that was an increase in member subscription income, from $845,125 in 2017 to $1.08 million this year.

The FSC has been going through a period of rebuilding since a divisive report into commissions prepared for it by actuaries MJW in 2015, which led to the resignation of major insurer members.

They have since rejoined.

FSC noted $52,965 in conference income for the year, which it had not had in the 2017 financial year.

Its expenses for the year were almost $1.03 million - $107,081 of that related to projects. Most expensive was the code of conduct, followed by FSC research at just under $25,000.

The code was the result of two years’ work and was launched at the FSC conference in September.

Chairman Rob Flannagan said it had been a strong year for the FSC.

“The sector is seeing considerable regulatory, technological and market change and the FSC is working with members to respond and adapt to them over the past year.

“Conduct and culture and ensuring great consumer outcomes is paramount and we have seen some important first steps by the industry, such as tackling soft commissions head-on by stopping incentive conferences and the adoption of the FSC code of conduct.”

The FSC has appointed its board for the next year, with new members ASB’s Adam Boyd, executive general manager, private Banking, wealth and insurance and Craig Mulholland, managing director, wealth, at ANZ.

Chief executive Richard Klipin said: “As the voice of the sector, the Financial Services Council is focussed on three key areas; great consumer outcomes, ensuring the sustainability of the sector and lifting standards of professionalism.

“Although the FSC has gone from strength to strength in the past year, we are not complacent. Our members remain focussed on managing, growing and protecting the wealth of New Zealanders.

“Supporting the financial health and wellbeing of New Zealanders is in our hands and all of us in the industry take that responsibility very seriously.”

Board:
• Rob Flannagan, Independent Chair
• Adam Boyd, ASB
• Charlie Trotter, FNZ
• Craig Mullholland, ANZ
• Cris Knell, Asteron/Suncorp
• Gail Costa, Cigna
• Kristy Redfern, AIA
• Nadine Tereora, Fidelity Life
• Naomi Ballantyne, Partners Life
• Nigel Jackson, Westpac
• Simon Hoole, AMP
• Susan Basile, BNZ