Chapman Tripp has made a submission to the Finance and Expenditure Committee on the Financial Markets (Conduct of Institutions) Amendment Bill (the Bill).
We make the following submissions on the Bill, which are explained in more detail in our full submission here:
the Bill was prepared before the impact from COVID-19. The Government may wish to reconsider its timing and approach post COVID-19, and should continue to consult with industry on its proposed reforms
clarity will be needed to support the fair conduct principle
fair treatment requirement needs to reflect the special circumstances of insurance industry
fair treatment should be applied generically when designing or offering products or services
licensed financial advice providers (FAPs) are to be further regulated by FSLAA and should be excluded here for now
section 446E(2) should be amended to exclude from the “intermediary” definition persons who are “engaged” by a financial institution or intermediary
the definition of “involved” in section 446E(3) should be narrowed in order to avoid unintended consequences, and
section 446P (Meaning of incentive) should be changed to limit bans on incentives.