New Zealand’s largest locally-owned life insurer Fidelity Life today presented its submission on the Financial Markets (Conduct of Institutions) Amendment Bill (also known as the COFI Bill) to the Finance and Expenditure Select Committee.

Joint Acting CEO Adrian Riminton says he questions whether the Bill actually achieves its objective of building consumer trust in the sector.

“We’re strong supporters of good conduct because it’s about doing the right thing for customers, advisers and shareholders. But we’d like to see the Bill postponed and more consultation done to ensure the COFI Bill creates certainty for the industry and consumers, and that it promotes confident and informed participation in financial markets.

“Without this, we’re concerned there may be unintended consequences which negatively impact the same consumers the Bill is aiming to protect, such as increased compliance costs, lack of clarity on incentives and commissions and risk of consumer confusion.”

Adrian says with the country’s attention currently on Covid-19, it makes sense that further consultation on the Bill be done once the full impact of Covid-19 on New Zealand is understood.

“Further consultation should take place only when this can be given proper focus by the financial sector, consumers, consumer support organisations as well as the Government.

“Right now, we believe our attention should be on continuing to support our customers – particularly vulnerable customers – advisers and our people through these challenging times.”

Fidelity Life’s submission can be found on the New Zealand Parliament website, or by clicking here.

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