The Financial Services Council (FSC) has acknowledged the progress on the government’s financial sector culture and conduct reform work programme with the release of two options papers.
According to FSC chief executive officer Richard Klipin, the latest option papers are important as they speak to improve financial service across the sector for the benefit and wellbeing of consumers. The next step for the council is to consider the proposals in detail, before providing a comprehensive response to the government.
“We look forward to working closely with the Minister, MBIE and the Regulators over this process,” he said.
Klipin emphasised FSC members and the wider industry take culture and conduct matters very seriously.
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“[W]e are currently working on a range of measures aimed at lifting standards across the industry and ultimately building public trust and confidence in the sector,” he said. “Our members are hard at work responding to the issues highlighted in the Financial Markets Authority (FMA) and Reserve Bank of New Zealand (RBNZ) report on Life Insurer Conduct and Culture that was issued earlier in the year.”
FSC also mentioned steps taken by the industry relating to improving culture and conduct. These include the adoption of the FSC code of conduct by all its members, responding to concerns about soft commissions by ending overseas conferences, and supporting the progression of the Financial Services Legislation Amendment Act.