'Not all advisers churning'

It was revealed yesterday that the regulator had taken action against 11 advisers in its investigation into life insurance replacement business.

But it highlighted concerns about the behaviour of the advisers it investigated, who were identified in 2016 as having high levels of replacement business.

The FMA found that half the 24 advisers it dealt with either were not aware of their obligation to exercise care, diligence and skill or were in breach of it. Many did not recognise that incentives such as overseas trips and upfront commission could create conflicts of interest with their clients.

PAA chief executive Rod Severn said it was positive that the report had been issued.