Banks, insurers' complacency 'hard to comprehend' - FMA
Speaking at the launch of a new financial integrity self-assessment tool for financial services providers developed by anti-corruption group Transparency International New Zealand, Everett said he had expected banks and insurers would have acted long before the FMA and Reserve Bank of New Zealand began their own review of conduct in the sectors following the release of the Australian royal commission's report last year.
Instead, the review left both agencies unconvinced that the financial sector had "done enough to create the engineering, the model that would address risks that they posed to their own customers and to confidence in the entire financial system".
"The banks and life insurers have had years to prepare for this," said Everett. "I found it hard to comprehend that the industry didn't get its act together and have a perfect story to tell."
Instead, the FMA and RBNZ had found enough evidence of poor practice to justify proposals for new legislation that is expected to place far higher behavioural standards and punishments on the financial sector than at present.
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