He said he would come to FMA with hope for New Zealand’s financial sector and leave as well, but in the meantime, putting customers first would benefit everyone in the long run. It was a difficult slog to try to convince the industry.
Friday, October 22, 2021 6:59 AM
Soon Rob Everett, former CEO of the Financial Markets Authority (FMA), spoke to an online audience as part of the Financial Services Council. ReGenerationsReimagined Conference this week.
When he first came to FMA in February 2014, he thought the Financial Markets Behavior Act was only a few months, and FMA was the last of the proceedings and investigations out of the financial companies. He says he was busy.
In late 2016, the FMA issued an action guide, and Everett said, “We only had licensing rights for certain sectors of the industry, but we hope other sectors will pay attention and begin changing operational settings. I did. “
“Frankly, we haven’t seen it. We needed a behavioral and cultural review with the Royal Commission of Australia and the Reserve Bank to draw attention to parts of the industry.
“And even now, court proceedings and public sanctions are required to fully list some businesses.
“We requested and received more financial ammunition to bring about a complex case that was strongly resisted by well-funded financial companies, and that’s what we’re doing. be.”
He states that it is difficult to regulate sector behavior and that behavioral regulation is complex. “… At a high level, we all want fairness, transparency and integrity.”
“Scammers, scammers, and outliers are always there, but I think most of the industry wants and aims for them.”
In 2014, when asked what was the biggest risk to the implementation of financial services, he said he was “competency.”
“I’m not entirely convinced that industry, legal and consulting professionals have paid a lot of attention to my comments and action guides regarding their arrival in early 2017.
“So it was clear to me that the action journey in New Zealand was a difficult yard and would take a considerable amount of time. I think we are only half of that.”
He says complacency was revealed by the Royal Commission of Australia.
“And in many ways it was the igniter needed to create the industry. Its advisors and consumers are faced with what can easily happen here.
“I can confidently say that there was real progress in late 2021, but it wasn’t easy. What do we look like to those who have recently read reports on non-life insurance? Small boards and senior executives do it until the FMA comes to their door. “
Everett says he does not believe that the “exorbitant illegal activity” seen in Australia is endemic or systemic here.
“But this is possible, and even if it isn’t, there are industry-wide laziness, lack of resources, and conflicting behavior.
“Investing in good technology and creating and maintaining effective processes and strict discipline is a daunting task, but it is essential and promising.”
But it’s not all fate and pessimism that Everett says he sees good signs of progress in some of almost every sector-repair programs are good at identifying and solving past problems, Product design and marketing are starting to shift away from servicing providers than consumers.
“We also see advisors, insurance companies, funders and banks working hard to serve our customers when they need them and to meet our expectations.”
He admits that “the kaleidoscope of regulation of financial services is a big challenge” and that the legislative environment is “complex and overlapping and difficult for some people than us.”
“This industry in New Zealand will thrive if we remember who we serve,” he says.
“It’s all New Zealand men, women and children. If you work in financial services, you provide New Zealanders with important products and services.
“Advice, insurance, banks, managed funds, investment products, platforms. Our economy cannot thrive without confidence that financial products and investments are offered and sold honestly and fairly.”
Rob Everett holds a Master of Laws degree from the University of Cambridge, worked in the Capital Markets Division of the International Law Office Allen & Overy, and has worked in various senior positions in Merrill Lynch in London, Hong Kong and New York for 17 years. A year as director of regulatory consultant Promontry before moving to New Zealand at the end of 2013.
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