Industry associations merge

The Health Funds Association of NZ will merge with the Financial Services Council from 1 December. Congratulations to the FSC and HFANZ on concluding the merger. In an increasingly complex environment, driven by regulatory change, technology, and consumer choice, it makes sense to have a single, stronger, industry advocate capable to looking across the wide range of issues in common facing the sector. 

From the media release: 

Health Funds Association of New Zealand (HFANZ) and the Financial Services Council (FSC)
today announced a merger into one single organisation under the Financial Services Council
banner from 1 December 2020, creating a membership association of close to 90
organisations.

In a major milestone for the sector, the merger brings together Health Insurance with the
Life Insurance, KiwiSaver, and Investment industries and will place a focus on achieving
good customer outcomes, ensuring sustainability of the sector, and lifting standards and
professionalism from a single, stronger voice.

Rob Flannagan, Chair of the Financial Services Council said, “The merger is a great
opportunity to bring the health and life insurance industry together under one roof and
focus the efforts of our joint members on the important issues of the day, and most
importantly of all, driving better consumer outcomes.”

Len Elikhis, Chair of HFANZ, said “The Health Funds Association of NZ members represent
80% of the health insurance sector and has a rich heritage of over 30 years.

“The private health insurance sector supports 1.4m New Zealanders to meet their health
care costs. We believe that a well-balanced and integrated health system is key to achieving
great patient outcomes.

“I would like to take this opportunity to thank our members for their significant contribution
and we look forward to playing an active part within the Financial Services Council,”
concluded Elikhis.

Richard Klipin, CEO of the Financial Services Council said, “Coming together to build a
stronger association is exciting and important for protecting the health of Kiwis.

“With a bigger, stronger and larger organisation of around 90 members, this merger will
focus our work in the sector and create a stronger voice that will help shape the future
financial wellbeing of Kiwis,” concluded Klipin.


Quotemonster is looking for a General Manager

Alan Rafe has decided to step down as CEO and Quotemonster are now looking to hire a General Manager. This role suits an aspiring leader with a substantial part of their experience in life and health insurance product development, claims assessment, or underwriting. If you are interested, or know someone who might be please use this link to apply. 


Legal and regulatory update for the life and health insurance sector

24 Nov 2020 – The Law Commission published its report titled, “The Use of DNA in criminal investigations”. The report’s recommendations include replacing the current law which the Commission states is neither comprehensive nor future proofed. Hon Kris Faafoi, Minister of Justice, acknowledged receiving the report and stated that the Government will now consider the report’s 193 recommendations. https://www.lawcom.govt.nz/our-projects/use-dna-criminal-investigations?#1627

24 Nov 2020 – The Police Financial Intelligence Unit published “The Suspicious Activity Report for Oct 2020. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-oct-2020.pdf

25 Nov 2020 - NZX announced the permanent establishment of a Technology Committee to provide specialist governance oversight of the role and use of technology in executing NZX's strategy. https://www.nzx.com/announcements/363847

20 Nov 2020 - South Pacific Central Bank Governors' committed to cost effective remittances https://www.rbnz.govt.nz/news/2020/11/south-pacific-central-bank-governors-committed-to-cost-effective-remittances

24 Nov 2020 - Reserve Bank response to letter from Minister of Finance (on housing) https://www.rbnz.govt.nz/news/2020/11/reserve-bank-response-to-letter-from-minister-of-finance  Also note this link containing a link to the Minister’s letter to the RBNZ https://www.beehive.govt.nz/release/government-review-housing-settings

25 Nov 2020 - New Zealand's financial system supported by health, fiscal and monetary policy responses (November 2020 Financial Stability Report) https://www.rbnz.govt.nz/news/2020/11/new-zealands-financial-system-supported-by-health-fiscal-and-monetary-policy-responses

 


Southern Cross awarded gold for COVID-19 response, and more daily news

Southern Cross has been awarded gold in Reader’s Digest Quality Service Awards in the health and travel insurance categories for the support offered to members during the pandemic.  This is the fourth consecutive that Southern Cross has be awarded gold in the Reader’s Digest Quality Service Awards health insurance category and second consecutive year that it has been awarded gold in the travel insurance category. Southern Cross has credited it’s focus on supporting members during the pandemic as the main reason for being awarded gold.

“Southern Cross has been recognised for the way it has supported customers during an extraordinary year by winning gold in both the health and travel insurance categories in the Reader’s Digest Quality Service Awards.

The awards are facilitated every year to determine which New Zealand organisations have delivered the most outstanding customer service. Consumers rate organisations on personalisation, understanding, simplicity and satisfaction.

This is the fourth consecutive gold for Southern Cross Health Insurance (SCHI) and the second in a row for Southern Cross Travel Insurance (SCTI). Both organisations come under the Southern Cross brand, and are businesses united by a not-for-profit ethos helping Kiwis look after their health and wellbeing.

Southern Cross maintained this award-winning customer service throughout the pandemic by focusing its efforts on supporting customers in ways that would have the most impact.”

Louise Waterson, Editor-in-Chief of Reader’s Digest, noted that challenges faced in 2020 reflect the importance of focusing on customer service. Waterson said Southern Cross achieved excellent customer service.

“Louise Waterson, Editor-in-Chief of Reader’s Digest, said the challenges of this year have highlighted the importance of delivering excellent service to customers.

“For another year, Southern Cross has achieved such excellence, and continues to raise the benchmark of what outcomes customers of health and travel insurance can expect. Only the highest standards will do when fulfilling the health and travel needs and concerns of their customers and their families. New Zealanders appreciate the skill, professionalism and compassion shown by Southern Cross – all of which makes for a winning business strategy. Congratulations,” she said.”

In other news

FMA: Guide for providers of Financial Advice Services – an introduction to Full Licence requirements

From NZ Herald: Son of killer Kiwi dad Rowan Baxter who murdered wife Hannah, 3 kids is suing her parents - as a substantial life insurance payment is disputed due to intestacy

Fidelity Life: Fidelity Life is urging advisers to complete the licensing questionnaire before the end of November to ensure new business is accepted and commission is paid


nib and Tend digital healthcare partnership, and more daily news

nib has announced it’s partnership with Tend to allow eligible nib members unlimited access to Tend’s GPs through an app. Rob Hennin, nib New Zealand CEO, has said that the partnership will allow members to become more proactive about their health and wellbeing. Hennin said that nib believe that enabling members to easily access GPs. Through this  partnership, nib will help members in taking preventative actions. Hennin has noted that nib advocates for digital healthcare to ensure people overcome barriers and seek medical help.

“Health insurer, nib New Zealand and digital-first healthcare provider, Tend today announced details of a transformational new partnership that will see eligible nib members offered unlimited access to Tend’s GPs through a secure app on their smartphone.

nib New Zealand CEO, Rob Hennin, says the partnership, which is a New Zealand health insurance first, enables nib members to be more proactive about their health and wellbeing by providing an affordable and convenient way to see a GP.

“At nib, we share Tend’s vision of making New Zealanders the healthiest people in the world. To do this, we need to be making it as easy as possible for Kiwis to talk with a doctor wherever they are and whenever they need to,” says Mr Hennin.”

“We also need to be encouraging more New Zealanders to be taking a preventative and proactive approach to their healthcare, and this means thinking differently about how we deliver health services.

“That is why we are huge advocates of digital healthcare because it helps address many of the barriers preventing people from seeking medical advice. Our new partnership with Tend means our members no longer need to take time off work, travel across town and sit in a waiting room when they are sick. Instead, seeing a doctor will be easy.”

Cecilia Robinson, Tend co-CEO has said that Tend is excited about the partnership. The Tend app will allow nib members to have common conditions managed, talk with doctors or nurses and receive e-prescriptions, test results, and laboratory forms on their cell phones. If an in-person consultation is needed, members can make appointments to see doctors in person.

"Tend co-CEO Cecilia Robinson says Tend is excited to be teaming up with a leading health insurer to provide nib members access to a gold standard digital-first primary health service.

“Tend is a ground-breaking healthcare service that delivers GP services through a purpose-built app on your smartphone and is as simple to use as Netflix or Instagram,” says Robinson.

“Like nib, we want to empower Kiwis to take greater control of their healthcare by allowing them to see to a doctor when they want, how they want and where they want, including from the comfort of their home.

“Through the app, eligible nib members will be able to talk with a doctor or nurse as easily as if they are sitting in the room with them. They’ll also be able to receive e-prescriptions, test results or laboratory forms directly to their smartphone.

“Many common medical conditions can be managed through virtual consultations, including minor ailments, various chronic conditions, follow-up consultations and the initiation of laboratory investigations and repeat prescriptions.

“If an in-person consultation is required or desired, patients can simply make an appointment to visit Tend’s state-of-the art clinic for a physical examination.”” 

In other news

AIA: AIA pimps up its Quick Quote calculator

Fidelity Life: Fidelity Life dials up new tech

Aon: Aon reveals new NZ$7.2 billion share repurchase programme

FANZ: How to get the most out of Xero webinar


Legal and regulatory update for the life and health insurance sector

23 Nov 2020 – IRD advised of technical changes to the OECD Common Reporting Standard (CRS) for 2021 relating to the Automatic Exchange of Information (AEOI) for Tax Purposes, which may have an impact on reporting New Zealand financial institutions. CRS reporting for the 31 March 2021 year, due to be filed with Inland Revenue by 30 June 2021, will need to comply with the new standard. https://www.ird.govt.nz/international-tax/exchange-of-information/crs/registration-and-reporting/changes-crs-2021


Welcoming our new staff member

Today we are welcoming Melissa Waddel to the Chatswood team. Melissa is joining us to provide administration support so that experienced members of the team can spend more time with clients and on client projects. If you are a regular client or adviser you may get a call from Melissa who is going to be working on upgrading our adviser and client databases as a portion of her role. 


FMA provides glimpse into full licence, and more daily news

The FMA has provided some insight into the requirements of the full license. It has been revealed that advisers can begin the application process from 15 March 2021. Although the process will be similar to the transitional license, the questions advisers will be required to answer have been described as being more rigorous. Unlike transitional licenses, full licenses will not have expiration dates. John Botica, director of market engagement, has noted that classes and conditions are another difference between the two license types.

“Advisers will be able to start applying for a full license on March 15, 2021, and the FMA says the process will be similar to what advisers have done for their transitional license – however, it says its questioning will also be a lot more rigorous.

According to FMA director of market engagement John Botica, the key differences between transitional and full licensing will be the time period they cover, and the different classes and conditions attached to a full license. He says the FMA will also go into more depth around an adviser’s practices and procedures.

“Transitional licenses last for up to two years, from March 15, 2021, to March 15, 2023, whereas a full license has no fixed term,” Botica explained.”

An important aspect of the full license is that it will include three different license classes. It will be important that advisers choose the right class as they will need to go through the full license application process again if they need to amend their class selection. Botica noted that advisers with transitional licenses will have two years to apply for their full license while new advisers must apply for full licenses. It has also been revealed that questions around competency, to conduct, to conflicts of interest will be examined during the application process.

““You have that license for as long as you continue to run your business. The full process also includes three different license classes, and it’s important to choose the right class – if you need to change it, you’ll need to go through the application process again.”

“There were two standard conditions for transitional licensing, and for the full license, we add another five,” he continued.

“That was subject to consultation, and we had an overwhelmingly positive response from everyone around standard conditions.”

Botica confirmed that there will be a two year period in which advisers can apply for a full license, and the competency safe harbour will last for those two years. However, new advisers will need to go straight to a full license – they won’t be able to obtain a transitional.

Botica says the questions asked by the FMA will also be much deeper, and will touch on everything from competency, to conduct, to conflicts of interest.” Click here to read more

In other news

FMA: FMA notes rise in business impersonation scams during COVID-19

From Goodreturns: Professional indemnity insurance: What advisers need to know

Lifetime: New director appointed to Lifetime board


nib Group deploy new digital claims process, and more daily news

nib has announced the implementation of Melvin, a machine learning engine, that will process claims that are submitted via the app. The adoption of this engine is intended to reduce manual data entry. Brendan Mills, nib Group CEO, has said that after nib enabled photo submission and claims via the app, user experience improved while information processing time increased. 

“Nib has implemented a new machine learning engine to process claims submitted via its app in less time by reducing the amount of manual data entry required behind the scenes. 

 

Five years ago the health insurer introduced a new feature that let members take a photo of their receipt and submit a claim via the app. 

While that improved the customer experience, it became a challenge to process the information at the backend as the volumes of photos increased, said nib's CIO Brendan Mills.

 

“We created a great customer experience but we then also caused ourselves some pain in processing photos because we're then taking a whole heap of flat images and having to rekey all the data [such as] provider number, customer number…it was quite an intensive process,” Mills told iTnews.

nib has said been trialing systems for the past six months. The engine uses AWS Textract to pick up all relevant information from submitted photos. The engine is set to save 20 seconds in handling time per claim, with half not needing further human intervention. nib is looking at expanding the service to process more claims, improve the service, and improve accuracy. 

“For the past six months, the health insurer has been using machine learning algorithms to strip information from the photos and pass it through to the core claims processing system. 

 

The engine, dubbed Melvin, was developed with data science consultancy Eliiza and uses AWS Textract to read the relevant information from the photos. 

 

Mills said the process saves an average of 20 seconds handling time per claim, and about half of the claims require no further human intervention to rekey or adjust any of the fields from the image. 

 

The insurer is now considering how to expand the service to process more claims, improve accuracy levels and determine if claims can be paid out without any human intervention. 

 

Mills said work is underway to determine the types of claims that have a very “high confidence” level to approve automatically, possibly with a post-processing quality assurance mechanism in place.” Click here to read more

In other news:

nib: adult or child signing up to Easy Health, Ulitimate Health Max, or Ulitimate Healththrough nibAPPLY will give them two month free cover. Offer ends 31 January 2021

FMA: FMA seeks consultation on proposed guidance for advertising

SHARE: SHARE confirms Newpark acquisition


nib publish finding from parenting survey, and more daily news

nib has published the findings from its State of the Nation Parenting Survey. The survey looked into the concerns of parents in 2020. Behavioural issues was identified as the top health related concern. This concern was raised by 34% of all participants. While parents with young children reported that their biggest concern was children experiencing extensive episodes of irritability, anger and short-temperedness. Nathan Wallis, nib parenting expert, commented saying that the shift during lockdown added to an already emotional stage for toddlers. When discussing lockdown experiences, participants noted that prolonged negative behaviour were common occurrences.

“Leading health insurer, nib New Zealand, has released the findings from its second annual nib State of the Nation Parenting Survey, shedding light on the concerns that have been top of mind for Kiwi parents during a year unlike any other.

 

Behavioural issues are the number one health concern Kiwi parents have for their children, cited by more than a third (34%) of respondents, up 13% from 2019. Last year’s biggest health-related concern, sleep, still features prominently, as do stress levels and diet and exercise.

 

Taking a closer look at families’ lockdown experience, the number of respondents reporting sustained episodes of negative behaviour from their children (lasting two weeks or longer) grew significantly during the nationwide lockdown period. Concerningly, this increase has been largely sustained since lockdown ended.

 

Parents of younger children reported prolonged episodes of irritability, anger and short-temperedness as their biggest concern, while among parents of high schoolers, the sharpest increase came in levels of concern around changes to children’s motivation.

 

nib parenting expert, Nathan Wallis says, “Lockdown saw most families dealing with added stress as they adapted to new and novel experiences. Toddlers may in many ways have felt this most acutely as they are already in a very emotional stage of development - it’s called “Terrible Twos” for a reason. Toddlers are also just beginning to learn how to manage their emotions, so it’s mum and dad who have to do most of it for them. This was understandably compounded by lockdown, so many parents of toddlers had it quite hard.””

The study also found that parents struggled. Participants reported that their motivation, energy levels, and performance at work decreased during lockdown while feeling overwhelmed increased. Parents reported that their biggest source of stress was financial uncertainty which impacted 39% of participants. The study found that only 8% of participants didn’t feel any stress.  When discussing the future, 70% of participants reported that they felt positive and 67% believed that lockdown helped to solidify their family unit.

“The findings also clearly demonstrate the toll 2020 has taken on parents themselves. Lockdown saw sharp increases in the number of respondents suffering from decreased motivation, decreased energy levels, a sense of feeling overwhelmed, and declining performance at work. Any subsequent reduction since lockdown ended has been limited to just one or two percentage points.

 

The biggest source of stress reported by parents this year was financial uncertainty, impacting 39% of respondents – followed closely by the impact of COVID-19 on the world, general job-related stress and the economy. Fewer than one in 10 respondents (8%) reported not feeling any particular level of stress over this period.

 

For the 42% of respondents who saw their financial situation worsen due to COVID-19, the impact of this was reflected in general stress levels, and also felt in terms of quality of sleep and relationships.

 

Despite an undeniably tough year, it’s not all bad news. When asked about the outlook for their family, 70% of respondents reported feeling positive about the future and 67% believe lockdown strengthened their family unit, with many reporting a greater sense of happiness, and better communication as a result.”

 

Here is a list of the key findings: 

Parents’ biggest health-related concerns for their children:

·       Behavioural issues – 34% (up 13% from last year) 

·       Diet and exercise – 33% 

·       Sleep (lack of, too much, pattern changes) – 31% 

·       Stress levels – 31%

Biggest behavioural concerns, with episodes lasting two weeks or longer (as experienced pre-, during and post-lockdown): 

· Pre-school children – prolonged episodes of irritability, anger and short-temperedness. 

§  12% pre-lockdown, 28% during lockdown, 25% post-lockdown

· Primary and intermediate children – prolonged episodes of irritability, anger and short-temperedness. 

§  17% pre-lockdown, 32% during and 28% post-lockdown

·       High school children – prolonged episodes of decreased motivation. 

§  12% pre-lockdown, 37% during lockdown, 23% post-lockdown

 

Biggest personal impacts of lockdown – experienced by parents themselves: 

·       Decreased motivation – 13% pre lockdown, 29% during lockdown, 28% post-lockdown

·       Decreased energy – 14% pre-lockdown, 29% during lockdown, 30% post-lockdown

·       Feeling overwhelmed – 19% pre-lockdown, 33% during lockdown, 31% post-lockdown 

·       Declining performance at work – 5% pre-lockdown, 14% during lockdown, 13% post-lockdown

 

Parents’ biggest sources of personal stress: 

·       Financial uncertainty - 39% of respondents

·       The impact of COVID-19 on the world - 36%

·       General job-related stress - 34%

·       The economy - 34%

 

Impact of lockdown on family unit: 

·       Greatly strengthened family unit – 24%

·       Somewhat strengthened family unit – 43% 

·       Made no difference to family dynamics / relations – 28%

·       Somewhat weakened family unit – 4%

·       Greatly weakened family unit – 1%

 

Parents’ outlook for the future of their families: 

·       Very positive – 22%

·       Positive – 48% 

·       Neutral – 18%

·       Concerned – 2%

·       Extremely concerned – 2%

·       Don’t know / unsure – 8%

 

In other news: 

AIA: AIA Taking Small Steps campaign won Best Brand Campaign at Interactive Advertising Bureau awards

Southern Cross: Little heart monitor can be sent to patients in the mail, speeding up results

Southern Cross: New findings reveal we put higher pressure on ourselves than others

 


Legal and regulatory update for the life and health insurance sector

18 Nov 2020 – The Privacy Commissioner published a reminder regarding the Model Contract Clauses for “Disclosing personal information outside New Zealand” under new Privacy Principle 12 available on the Commission website at https://privacy.org.nz/news-and-publications/guidance-resources/disclosing-outside-nz/

19 Nov 2020 – As part of Fraud Awareness Week, which runs from 15 to 21 November, the FMA released a media briefing regarding the rise in scams impersonating NZ businesses during COVID-19. https://www.fma.govt.nz/news-and-resources/media-releases/rise-in-scams-during-covid-19/


UPDATED: SHARE acquires Newpark, and more daily news

Congratulations to SHARE on their acquisition of the Newpark network. Goodreturns reported that SHARE NZ has bought out Darren Gannon - the details below come from their article. Darren called me to explain that the assets of the network have been sold and that the goodreturns story was incomplete. He highlighted the joint release issued by SHARE NZ and himself which can be found, also at goodreturns, via this link

“SHARE has bought Darren Gannon's controlling stake in the insurance and mortgage advice group, TMM Online can exclusively reveal.

The acquisition, which could be announced this week, comes after Newpark sought new financing amid a lack of certainty over its life insurance revenue.

SHARE has pounced on Newpark in a bid to boost its home loan adviser numbers. Since inception, Newpark Home Loans has grown to over 200 advisers.

The combined group is likely to have over 500 advisers across investment, insurance, and mortgage advice.

A new company, Newpark 2020, was listed on the companies register, on November 12, with SHARE NZ listed as its 100% shareholder.

The Newpark brand will remain, sources said. Advisers will have the option of keeping their planned regulatory setup, or taking one of the options available to current SHARE members.

SHARE runs a corporatised offering, in which advisers own a share in the business and pool clients. It also runs a non-branded side, with advisers working under its FAP.

Sources said that despite the change in ownership, it would be "business as usual" for advisers at Newpark, and advisers would be able to keep their current regulatory and ownership structure, and keep their own FAPs.”

Darren Gannon, Adele Gannon, and Murray Weatherston are expected to step down from their roles as board members. Tony Dench is set to be the CEO of the combined group.

“Industry sources said the deal would suit Newpark advisers given SHARE's strong back-office and governance systems.

The takeover will see Darren and Adele Gannon, and Murray Weatherston step down from their board roles at Newpark, as SHARE NZ directors assume the board seats.

SHARE's Tony Dench will be the chief executive of the combined group, while Richard Thomas will become chairman, sources said.” Click here to read more

In other news

Chatswood's view is perhaps best summed up by the fact that we have now created a tag on this blog "SHARE" - because we expect to see more posts referencing them. 

 

Fidelity Life: has been working with reinsurers to enable more customers access to Income Protection products

Fidelity Life: advisers in Te Anau helped raise $12.5k for Fiordland Conservation Trust’s Kids Restore the Kepler. 

Fidelity Life: Fidelity Life will be change to questions about weight changes, criminal convictions and pending medical test results on application forms

Fidelity Life: The second batch of product modules will be available on Learning HQ. they will focus on:

  • Income Protection Cover
  • Monthly Mortgage Repayment Cover
  • Waiver of Premium Cover
  • Retirement Protection Cover
  • Funeral Fund Cover

Fidelity Life: Commission payments for Fidelity Life and ex-Tower:

Fidelity Life and ex-Tower

23 Dec 2020

One run for the week

31 Dec 2020

Month end - one run for the week

Group business

16 Dec 2020

One run for the week

From Goodreturns: Does liability for advice stop when clients are sold?


Legal and regulatory update for the life and health insurance sector

17 Nov 2020 – FMA released the FAP final licensing application guide titled, “Guide for providers of Financial Advice Services – an introduction to Full Licence requirements.” https://www.fma.govt.nz/assets/Licensing-guides/Introductory-guide-to-full-licence-requirements.pdf

17 Nov 2020 – RBNZ launched consultation on the details for implementing the final Capital Review decisions relating to banks announced last December, with consultation closing on 31 March 2021. https://www.rbnz.govt.nz/news/2020/11/reserve-bank-launches-consultation-to-implement-capital-review-changes


Legal and regulatory update for the life and health insurance sector

12 Nov 2020 – IRD advised that the Government has announced some changes to the Small Business Cashflow (Loan) Scheme, including extending applications for the loan, which can now be made until 31 December 2023, an extension of 3 years. https://www.ird.govt.nz/updates/news-folder/covid-19-small-business-cashflow-loan-changes

13 Nov 2020 – FMA released its Audit Quality Monitoring Report for 2020. https://www.fma.govt.nz/news-and-resources/media-releases/monitoring-shows-improvement-audits/

15 Nov 2020 – The Government announced the completion of signature of the Regional Comprehensive Economic Partnership Agreement. https://www.beehive.govt.nz/release/new-zealand-signs-regional-comprehensive-economic-partnership

16 Nov 2020 – RBNZ announced the introduction of new series and amendments to its weekly publication of Bank Customer Lending (BCL) metrics.

17 Nov 2020 – FSC advised that the RBNZ will be holding a webinar on Monday 14 December from 10:00-11:30am on insurance in relation to IFRS17 and Solvency.


Get a transitional licence

If you already have a transitional licence or a signed contract with a company that has one, then this doesn't apply to you. If you haven't signed up - one way or another - It is time to get a transitional licence.

We know that the Financial Markets Authority strongly recommended that financial advice providers apply before Monday 14 December 2020 to ensure that their licence application can be processed before the start of the new financial advice regime on 15 March 2021.

That is now less than a month away.

If you are a financial advice provider and with a limited company and you do no not have an FSP number or have not indicated on the FSPR correctly that you intend to apply for a transitional licence, there can be delays. Do not let those trip you up - get on with it now. 

If you are relying on another financial advice provider to bring you in under their licence (as an FA, or an authorised body) and you have not agreed the terms of your contract then you should view the transitional licence as a small insurance policy. For $500 you protect your right to continue to receive renewals and give advice. If you don't buy it and you are let down or don't like the contract you could lose your whole business - including the right to receive renewals according to some agency agreements - for failure to simply get a transitional licence.

I believe in insurance and that is a low-cost piece of coverage worth having. 

If your financial advice business is just one company, and has an FSP number, the process to apply for a transitional licence may only take about 20 minutes.


Partners Life offer guide on customer affordability considerations

Naomi Ballantyne recently discussed concerns that advisers have brought forward in a video that Partners Life have published. Advisers mentioned that their clients were receiving contradicting advice from other advisers. In the video, Naomi discussed the options advisers have when dealing with similar situations.

“Recently we have been contacted by a number of advisers expressing concern about some of their Partners Life clients receiving advice from other advisers, which conflicts with the advice they gave their client to retain and amend their existing covers.

What should they tell their clients when asked why they would receive such conflicting advice from two different advisers? To help answer this question, Naomi has put together a short video explaining to clients the questions they might want to ask should they be faced with this dilemma.  You can easily share this video with your clients from our Facebook page, should you think this might be useful to any particular client.”

 

In other news

nib: organisations with 15 or more people now can have all pre-existing conditions covered

Asteron Life: Understanding and supporting client vulnerability webinar

Partners Life: Steve Wright on Disability Covers