Banks told: Make sure you know what advisers doing

The regulators on Monday released their report into the conduct of the banking sector. A similar process is still under way with life insurers.

It was sparked by revelations of misconduct by the Australian banks, in that country's Royal Commission of Inquiry.

While the New Zealand report found no widespread or systemic issues to address, it highlighted changes to be made. Banks had been slow to move on conduct issues, the report said, and had not invested enough in their systems and processes.

Banks highlighted conduct risks associated with the limited oversight of the customer interactions happening between third-party advisers and other intermediaries.