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Dear Contact,

Welcome to our October FSC Connect newsletter where we provide an update on the Financial Services sector and what is happening within the FSC. It's been a productive month continuing business in the new normal and planning of the Generations Digital Conference. We are thrilled to be presenting the digital format of the conference and look forward to seeing many of you there, if you have not registered yet, head to the Generations Conference website.

Another key event to close October is the Annual General Meeting which will take place on Wednesday 28 October 2020, read on for further details.

The regulatory update provides an overview of current consultations and submissions, we thank all members who have contributed to submissions.

As the FSC Committee updates highlight, committees have had a busy month achieving key goals and making headway with their work plans. 

Our Get in Shape and FSC Connect webinars continue to attract an impressive number of viewers, this is an encouraging step for FSC digital events. If you have a suggestion for future topics or themes you think should be covered, please email

In addition to the conference, this month also features World Investor Week which has a number of useful webinars and initiatives planned by the FMA and participating industry organisations. Improving the professionalism of the industry is a key focus of the FSC, and so we encourage you to participate in as many sessions as possible. Further details and links are provided below.

Enjoy the monthly news and we look forward to seeing you all virtually at the Generations conference, October 13 -15.

Have a great week,

Richard and the FSC Team
Generations Digital Conference October 13th,14th & 15th


Hon Minister Grant Robertson, Minister for Finance | Paul Goldsmith, National’s Spokesperson for Finance
Facilitated by Heather Du Plessis-Allan - TV Journalist, Newstalk ZB

Hon Kris Faafoi - Minister for Commerce and Consumer Affairs
Andrew Bayly - Opposition's Spokesperson for Commerce and Revenue
 Jack Tame - Presenter, Newstalk ZB Host


James Shaw - Co-Leader, Green Party | Corin Dann - Political Journalist, RNZ National


Emma Mellow - Auckland Central Candidate, National Party | Corin Dann - Political Journalist, RNZ National


 Facilitated by Jack Tame - Presenter, Newstalk ZB Host


                                                     Rob Everett                          Susan St John                          Will Burkitt 
                                                          CEO                                       Director                  Retirement Innovation Leader
                                       Financial Markets Authority     University of Auckland RPRC                Mercer


                                                       Andrew Inwood                             Jane Wrightson                               Ryan Bessemer
                                                         Principal                              Retirement Commissioner                              CEO
                                                         CoreData                                             CFFC                                         Trustees Executors
                                CLOSING KEYNOTE DAY 1            CLOSING KEYNOTE DAY 2      CLOSING KEYNOTE DAY 3

                                             Sinead Boucher                                       Dr Siouxsie Wiles                                       Jase Te Patu
                                                           CEO Stuff Ltd                                           Microbiologist &                              Award Winning Wellbeing
                                                                                                                         Associate Professor                                Advocate & Founder  
                                                                                                                                     MNZM                                   M3 Mindfulness for Children 
Register Now
Financial Services Council  Annual General Meeting 2020
Save the date for the Financial Services Council Annual General Meeting on Wednesday 28 October at 4.00pm. The AGM will be held virtually with a possible in-person venue being announced closer to the date, depending on COVID restrictions. 

Register in advance for this meeting via Zoom.

After registering, you will receive a confirmation email containing information about joining the meeting.
Regulatory Updates
Submissions - September 2020

Options for establishing a data right in New Zealand
MBIE sought feedback to determine if New Zealand needs a consumer data right and if so, how it should be designed.

The FSC held two Focus Groups and received a large amount of feedback. Thank you to all who have contributed and please contact us if you would like a copy of the submission.  

Current Consultations

Reserve Bank Act Review Phase 2, Third Round
Further consultation is underway on the prudential framework for deposit takers and depositor protection which is the last round of this review. Of particular mention is Chapter 6 of the Consultation which asks whether the FMA’s onsite inspection power should be expanded in the same way that is proposed for the Reserve Bank (which would also apply to insurers).

Please contact us if you would like to contribute to our submission on this Chapter 6 or any other aspects of the Review.  Submissions close on 23 October 2020.

New Consultations

Insurance (Prudential Supervision) Act (IPSA)
On 1 October the Reserve Bank relaunched their review of IPSA by way of a paper setting out the scope of the review (no comment sought at this stage) and the following timeline of their consultation process:
  • November 2020: Scope of the Act and Overseas Insurers
  • First Half of 2021: Statutory Funds and Solvency Buffers
  • Second Half of 2021: Governance/Appointed Actuary
  • First Half of 2022: Supervisory Processes and Technical Amendments
  • Second Half of 2022:  Regulatory Tools and Distress Management
The above consultation modules will be followed by possible Cabinet decisions and draft legislation (second half of 2023 at the earliest).

Once the initial consultation paper is released in November, a Focus Group will be established via the FSC Regulation Committee. Please contact us if you would like to be involved.
Insurer Solvency Standards Reviews
The Reserve Bank on 1 October also released a review paper on the associated Insurer Solvency Standards, which govern the minimum amount of capital that insurers are required to hold. A second, substantive consultation paper outlining their response to IFRS 17 and the structure of solvency standards is expected to be issued in either November or December 2020.

The FSC IFRS17 Working Group will be holding a Solvency Standards (Principles and Timeline) Focus Group to provide feedback, please contact us if you would like to be involved.
Submissions close on 12 November 2020.
FDR FX Hedges Rules Consultation
Officials have been reviewing the application of the FDR FX hedges rules which allow the fair dividend rate (FDR) method to be applied to foreign currency hedges. A consultation letter details issues with the rules and proposed solutions to these issues. We will be discussing this consultation at our next FSC Taxation Committee, please contact us if you would like to be involved.
Submissions close on 20 November 2020.

Regulator Engagement
The FSC Regulation Committee was delighted to host MBIE last month to discuss the Finance and Expenditure Select Committee’s Report back of Financial Markets (Conduct of Institutions) Amendment Bill. We are welcoming MBIE back on 20 October to continue these discussions. If you are not part of the Regulation Committee and would like to attend, please contact us.

Please contact us if you would like to receive the September edition of Regulatory Outlook, Issue 26. Available to FSC members only.
FSC Data Programme update
Excellent engagement and progress means that the new data collection process and data dashboards are complete. Thank you to all FSC members that have contributed to the development and completion of this work. The new database build is making good progress, with testing to take place through October and November ready for implementation for the quarter ended 31 December 2020.
If you’ve questions (for example, what new data do I need to provide? What’s the new reporting process? How do I get involved? What do I need to do?), please get in touch with
Please continue with the current data reporting process until advised otherwise.
FSC Code of Conduct update
We’ve had great feedback on the launch of the new guidelines and new educational materials, with members sharing how the new materials have helped their teams bring the Code to life, enabling robust discussions about conduct. Remember that the new guidelines supporting the FSC Code of Conduct come into effect on 1 January 2021. If you haven’t received the materials or would like to discuss, please contact
We remind all FSC members of your obligation to comply with the FSC Code of Conduct. Please let the FSC CEO, Richard Klipin, know if you suspect your organisation has breached the Code in any way.
FSC Events
The Professional Advice Knowledge Hub has now been launched. Take a visit to access a wealth of resources designed for the advice community. These include recordings of all past Get In Shape webinars and registration details for upcoming sessions. 

View past Get In Shape webinars on demand:

Session 8 - Governance & director's duties in small advice businesses

Committee Updates
All FSC Committees are progressing the activities in their 2020 workplans. Highlights this month include: 
  • The Adviser Transition Working Group have formed a focus group to assess how the FSC can best provide effective guidance to advisers on their disclosure requirements. This material alongside a disclosure focussed Get In Shape webinar will be valuable to advisers in our community.
  • The new Life Insurance CEO Forum met in September to discuss strategic issues for the life insurance sector. Issues such as under-insurance, the economic outlook and regulation were top of mind.
  • The FSC KiwiSaver Early Withdrawals Working Group is preparing to send out a survey to relevant members. The purpose of this survey is to gain an understanding of what budget assistance support is provided and available to KiwiSaver members in New Zealand when they run into financial hardship.
  • The new Investment and KiwiSaver CEO Forum met last week to discuss the strategic issues facing the investment market, including the retirement savings gap and sustainability of the superannuation system.
FMA Release KiwiSaver Annual Report 2020
The results of the KiwiSaver annual report, signal the volatility of the year, with key hey highlights showing:
  • 8.7% growth across Total Funds Under Management
  • 28% increase in withdrawals for those 65+
  • 25% increase in first home purchases
  • Fund switches are up 54%, 
  • Combined fees revenue are up 12.35%
  • Significant decline of 121.9% in investment returns

View the full report here
World Investor Week, October 5 -11 2020

World Investor Week is a global campaign to raise awareness of investor education and protection, promoted by the International Organisation of Securities Commissions (IOSCO).

New Zealand is one of 92 countries taking part in a week that raises awareness of investor capability and protection. The FMA is leading events across the country, all Industry organisations, stakeholders and interested parties are invited to participate. The FSC will be supporting these events and promoting the key messages to our community.

World Investor Week Key Messages:
  • Do your research before investing.  Take the time to understand risk and assess fees.
  • Taking a long-term, diversified approach is important.  Before investing, think about your future needs and goals and invest accordingly. 
  • Digital platforms have made it easier for people to invest, but it’s still important to do your homework.  Use information from trusted sources like the FMA and, as well as information from the organisation you’re investing with.  Avoid basing investment decisions purely on advice or tips from individuals on chat rooms or social media.
Visit the World Investor Week website for further information on events scheduled.
World's insurers and UN Environment Programme's assessment of climate change futures initiative 
Over the past 8 months, 22 leading insurers from across the globe have been collaborating under the auspices of UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI) to explore and pilot methodologies that insurers can use towards implementing the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD).

The PSI hosted a global webinar to provide a progress update on its project that assesses climate-related physical, transition and litigation risks in the context of insurance underwriting portfolios, with a focus on climate scenario analysis. It serves as a prelude for the final report to be published by the end of 2020.

See the full report here and watch the Webinar

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