Regulatory change needed, or halt to AMP Life sale, policyholder says

Geoff Bascand

Last week, the Reserve Bank approved the sale in a revised arrangement. It followed an 18-month review process.

Once sold, AMP Life will be in “run-off” and no new policies will be written.

“A bespoke trust model has been established that ensures supervisory objectives are better met, future industry dynamics are generally more positive, and there is additional protection in the event of insolvency – one of the key risk considerations that we have been seeking to mitigate,”  Reserve Bank deputy governor and general manager for financial stability Geoff Bascand said.

The trust is required to hold capital and assets in New Zealand that help provide long-term security for policyholder benefits or investments, where relevant.