Asteron Life managing director Nadine Tereora says it was not a decision taken lightly.

“The decision we’ve taken to resign our membership has been a difficult one. But we’re convinced it’s the right thing to do at this point in time. I do believe that the FSC has a role to play in our industry but the accent of the MJW report, and the FSC’s association with it, makes our continued membership difficult.”

Asteron Life believed the MJW report did not fairly represent the adviser community, she said. “We embrace constructive feedback, particularly so in the context of independent reports. But we don’t believe the MJW report fairly reflects the issues in its observations and it most certainly doesn’t reflect our view.” 

Tereora said if the industry was truly serious about bridging the underinsurance gap then face-to-face advice has an essential role to play. “Broader collaboration is the key if we’re to influence the best possible outcomes for customers and the IFA community plays a huge role in that. To me at least, this would be a worthwhile aspiration if we’re to deliver a sustainable and cohesive life advice market that respects all interested parties.”

She said Asteron Life believes the review in its current form doesn’t deliver to the scope originally outlined by the FSC’s membership body. “Ultimately, I believe it risks the industry’s attempt to bridge the underinsurance gap with New Zealand’s various communities and the important role advisers play in providing New Zealanders with access to advice. Because of this and the importance of this debate, I simply cannot support its findings."

Asteron Life is now obliged to serve out its notice period of 12 months.

Tereora said it would continue to engage responsibly and constructively with the FSC and its membership.