The Financial Markets Authority (FMA) has just published two consultation papers proposing a range of new obligations for financial services licence-holders. Under one proposal, all Financial Markets Conduct Act (FMC) licensees would have to supply a written annual declaration to the regulator stating “they have complied with each condition of their licence”. “We believe this… [Read More…]
200 basis points in two years: PIMCO counts down to Fed rate launch
The US Federal Reserve will start tightening monetary conditions in December, ramping up rates by 2 per cent over the next two years, according a new analysis by global fixed income manager, PIMCO. The paper, authored by PIMCO global strategic adviser Richard Clarida, argues that – barring an international catastrophe – the Fed was locked… [Read More…]
Sovereign CEO resigns in frantic week for NZ life companies
Sovereign, chief executive officer, Symon Brewis-Weston, has resigned less than three years into his tenure. Formerly head of corporate financial services for Sovereign’s Australian parent, the Commonwealth Bank of Australia (CBA), Brewis-Weston joined NZ’s largest insurer in April 2013. He will head up FlexiGroup Limited in Australia, according to a Sovereign statement. “During his time… [Read More…]
Seven ways to improve life: FSC report sees light of day
The controversial Financial Services Council (FSC) review of New Zealand’s insurance advisory industry has recommended seven major industry reforms including a drastic scaling back of upfront commissions. While the reforms listed in the FSC-sponsored document largely follow its Australian exemplar – the 2014 ‘Trowbridge’ report – the New Zealand version calls for tougher policy renewal… [Read More…]
Regulator’s head of supervision resigns; NZ Super, AMP name new execs
The Financial Markets Authority (FMA) has lost another senior figure with the resignation of Kirsty Campbell, head of supervision. Campbell, appointed to the role last June after joining the regulator in 2012, will leave the FMA at the end of this year as her original four-year contract expires, according to sources. A lawyer by profession,… [Read More…]
SuperRatings calls for fee realism (and robots) in KiwiSaver take two
An obsessive-compulsive focus on fees could be detrimental to the long-term health of KiwiSaver members, according to Australian research house, SuperRatings. In its second annual report on the KiwiSaver market, SuperRatings says while fees were important in rating provider competitiveness, the nominal fund costs should be put in a wider perspective. The report says SuperRatings… [Read More…]
Bank winning transfer game (mostly) fair and square, FMA finds
The long-awaited Financial Markets Authority (FMA) report into KiwiSaver sales practices found transfers account for about half of all transactions. Of the 142,003 total KiwiSaver sales the FMA uncovered in its seven-month data dig last year over 70,000 were transfers, the report says. And despite concerns about transfers (particularly bank-initiated member shifts) sparking the original… [Read More…]
Ethical investment hook-up tool set for release
The Responsible Investment Association Australasia (RIAA) will launch a new online tool next year to link investors with appropriate products and advisers. Simon O’Connor, RIAA chief, told the group’s NZ conference in Auckland last week consumers were increasingly interested in ethical investing with retail demand in Australia doubling over the last two years. O’Connor said… [Read More…]
Asia-Pacific a target as PRI expands global reach
The United Nations-backed Principles for Responsible Investment (PRI) organisation plans to open two new “regional hubs” to boost its global presence, according to chair, Martin Skancke. Skancke told the Responsible Investment Association Australasia (RIAA) conference in Auckland last week the UK-headquartered PRI had probably been “under-servicing” members in some regions. “We will be changing our… [Read More…]
Rise of the individual to transform asset management
The growing importance of the individual investor is changing the structure and growth prospects of the asset management industry in most major markets. And it is happening fast. Managers need to be aware of their new business challenges, according to a report by Casey Quirk & Associates. Organic growth in the global asset management industry… [Read More…]