CoFI a journey of frustration: CEO
MBIE has begun the task of developing regulations to sit alongside the COFI Amendment Act which was passed into law at the end of June.
At a recent conference on financial markets law, the FMA’s director of banking and insurance, Clare Bolingford, revealed that the regulations would cover two key areas: the fees the FMA will charge for licensing applications from financial institutions (insurers, banks and non-bank deposit takers) and the much-flagged rules on incentives and commissions for intermediaries who distribute the institutions’ products.
Bolingford said the rules were likely to ban commissions and incentives based on value and volume “but that doesn’t mean there can’t be other good incentives put in place”.
The industry has already responded to comments from the government that value and volume-based commissions are a thing of the past. During the past year, insurers have phased out the more controversial commissions formerly bestowed on star performers – the offshore conferences, holidays and other luxury experiences.
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