The Financial Markets Authority may take regulatory action against three financial services firms after its latest probe into replacement life insurance. BusinessDesk's Paul McBeth reports.
New Zealanders' confidence in the country's financial markets dipped a touch but stayed relatively upbeat in an increasingly uncertain and volatile environment, with people largely comfortable about the stability of markets and the economy, a Financial Markets Authority survey shows.
The Serious Fraud Office is now investigating CBL Insurance and associated entities, adding to investigations by the Reserve Bank and Financial Markets Authority.
The Government launched reviews of employment law and climate change law aimed at soothing the nerves of employers and farmers respectively. It appeared to rule out a breakup of the Reserve Bank and started considering introducing a deposit insurance scheme. Better foreign ownership data showed almost 20 percent of property buyers in central Auckland in the last year were not citizens. Documents showed officials advised the Government against its decision to stop issuing new offshore oil and gas drilling licenses, saying it would actually increase emissions because coal would be used instead of gas. The economy may have slowed a bit in the March quarter as construction sector activity and confidence continues to wane. Donald Trump waged trade wars ahead of G7 meetings and his summit with Kim Jong Un.
The 8 things that mattered this week included big Government decisions on mycoplasma bovis and methamphetamine contamination of houses, the return of Heather 'H2' Simpson to oversee a major and potentially problematic health sector review, fresh criticism of New Zealand as the 'soft-underbelly' of the Five Eyes security alliance, Rob Everett's warning to banks operating at the 'edge of the law', the Law Society's mea culpa in the wake of the #metoo moment at Russell McVeagh, the frustrating weakness in business confidence and the latest turmoil around Donald Trump's trade wars and the eurozone debt crisis.
Are there fewer complaints about our financial services sector than in Australia because the culture of banks and insurers here is better, or is it because customers are "just losing the will to live?".
Life insurance companies have less than a month to come up with information to reassure regulators that misconduct being unveiled by the Hayne Royal Commission in Australia isn’t happening here - or is being addressed.
The eight news events that mattered in the week around our political economy included the key details in Budget 2018, the emergence of mycoplasma bovis as a macroeconomic and fiscal issue, pressure building on New Zealand's big four banks to detail their conflicts over Kiwisaver sales, and a wider crackdown on retailers not paying workers at the start and end of shifts.
Newsroom's Business Editor Nikki Mandow has taken a closer look at the conflicts of interest problem the biggest banks have around Kiwisaver. The FMA and the Reserve Bank are taking an even closer look behind the scenes.
The New Zealand directors of subsidiaries of the 'big four' Australian banks have been put on notice by the new Reserve Bank of New Zealand governor to ensure they are acting in New Zealand's interests and in tune with New Zealand's banking culture, not that of their parents across the Tasman, reports Lynn Grieveson.