FINANCIAL ADVICE NZ REACTION: Consumer focus welcome

"Ensuring good consumer outcomes is the collective responsibility of all participants in the life insurance sector. We welcome the Report’s focus on ensuring good consumer outcomes and the central importance of this in the processes and practises that underpin conduct and culture.

"While the report is focused on insurance providers, certain sections relate to insurance advice and advisers. The report highlights the benefits of quality advice, stating that: “where a product is sold without advice, there is an increased risk of the consumer making an unsuitable purchase, as the policy document is often long and complex, and doesn’t aid understanding.”

"This once again evidences the value of advice and the significant contribution made by quality advisers.

"The report also addresses soft commission and intermediary commissions.