The burden of regulation

The Financial Services Council's annual report highlights the burden of regulation being forced onto the financial services industry.

Thursday, November 3rd 2022, 8:09AM

During the year it made 14 submissions on policy consultations - which is a rate of more than one each month.

On top of that it says it held more than 100 meetings with government, regulators and Inland Revenue during the year. That equates to about one meeting every couple of working days.

Chief executive Richard Klipin says the engagements "included meetings with XRB on Climate Standards, attending the newly created Insurance Forum under CoFR, meetings on specific major policy issues such as a New Zealand Income Insurance Scheme and meetings with the FMA and MBIE to discuss Significant Financial Hardship and Early Withdrawals from KiwiSaver, along with many more."

Chairman Rob Flannagan also noted it "continued ongoing meetings with the FMA and MBIE, and engaged key politicians and regulators including Minister David Clark at our Regenerations Conference."

This year was the first year the FSC team operated under the refreshed strategy that had been approved by board in May 2021. The financial confidence and wellbeing of New Zealanders was at the forefront of its work, reinforcing that its reason for being goes beyond being an inward-focused member-based advocacy body protecting the status quo and instead seeks to deliver long-term change for the wellbeing of all New Zealanders.

The FSC itself has continued to grow, most recently with the appointment of its first-ever chief operating officer.

The organisation also have just under 500 volunteers working across its many committees bringing broad expertise from across its membership.

Klipin says it has 14 standing committees and 12 project-based working groups.

The FSC membership continues to grow, with 98 members reported in September 2021 to 106 in August 2022. Those new members within the health insurance community who joined as at the completion of the HFANZ merger in 2020 are now actively involved in FSC committees, working groups, advocacy and events.

Over the year the FSC increased its revenue from $2.40 million to $2.75 million. Revenue comes from subscriptions and fees paid by its members and associate members.

These are set by the board. Members and associate members provide representation and, in some cases, financial resources to committees formed by the board to work on specific industry issues.

The council saw a signifiant turn around in its results, posting a loss of $65,111 in the previous year and reporting an after tax surplus of $354,509 in the 12 months to June 30.

Its members manage more than $95 billion of funds under management and pay out life and health insurance claims of $2.8 billion each during the year.

Tags: FSC