Media & Submissions

In mid-November 2022, APRA released the results from their most recent Risk Culture survey. The survey was provided to 18 authorised deposit-taking institutions (ADIs) between October and December 2021. The 18 ADIs comprised the five largest banks (Major ADIs) and 13 smaller entities, consisting of regional banks, foreign bank subsidiaries/branches, mutual banks, credit unions and building societies (Other ADIs). The survey invited all employees in these selected institutions to share their views on their organisation’s risk management practices and culture.

With the FMA recently releasing its Conduct of Financial Institutions licensing materials, it was a timely reminder that 2023 will be a significant year for many of New Zealand’s financial institutions as they ready themselves to meet the requirements, for the first time, of a principles-based legislative regime.

The Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI) will require banks, non-bank deposit takers (NBDTs) and insurers (collectively referred to as ‘financial institutions’ under CoFI) to comply with a fair conduct principle to…wait for it…treat their customers fairly.

Financial service businesses across New Zealand face new and unknown risks and thus new and untapped opportunities. The need to pursue Business Vitality has never been greater.

Risk management and assurance is no longer about simply minimising risks and protecting value; this traditional risk stance has had to evolve and rightly so. This means proactively pursuing better ways of working, to make unknown risks known, to pre-empt and treat those risks to enable businesses to not simply survive but to thrive.

Lego, the coloured plastic brick, needs no explanation – it has existed for more than 60 years, is in every respectable toy shop around the world, has theme parks almost literally built out of it and even has Marvel & DC Comic movies based around its brilliantly coloured bricks.

A Lego brick on its own is nothing special. But link some of them together, and you could end up with anything from a medieval castle to a pirate hideout or a spaceship. Similarly, good effective risk frameworks should be fashioned from a number of simple, repeatable processes that can be integrated and adapted and scaled with developments in your business over time.

A UK think tank study in 2014 estimated that between 2010-2014, 25% of UK banks’ (ref. 1) pre-tax profits were attributed to consumer redress and associated administration costs.

This same review identified that 3 of the 5 largest had retail misconduct costs that were more than dividends. In New Zealand, we haven’t seen the same level of systemic misconduct as the UK or Australia, but it is clear that financial institutions are also paying for the outcomes of decisions made years ago.

Remediation best practice and pitfalls are once again in the spotlight with the Commerce Commission’s consultation on its draft guidance and Waka Kotahi making news for its vehicle registration refund letters. The need to make good for prior errors, omissions and failures can be a vexing exercise for those ill-equipped. But it can also be the experience that strengthens trust and builds enduring customer relationships.

Privacy is having a moment.

Following an incessant flow of data breaches and the unauthorised release of personal information in recent years, governments across the world have created new legislative and regulatory regimes designed to protect consumers.

Respected financial services industry figure, Tracey Berry, has added to the growing partner ranks at specialist consulting firm, Mosaic Financial Services Infrastructure.

Berry, most recently on contract as regulatory compliance manager for TSB, has a long history in the bank-based wealth management sector.

Privacy entrepreneurs Mark and Caroline Carver have joined fast-growing specialist consulting business, Mosaic Financial Services Infrastructure.

The Carvers will provide privacy consulting and training services to Mosaic clients as demand for personal data security rises in the increasingly digitised financial sector.

Mark Jephson, ex Perpetual Guardian chief, has joined Auckland-based specialist firm, Mosaic Financial Services Infrastructure, as partner.

Mosaic founding partner, Myles Allan, said Jephson – who led Perpetual Guardian for almost two years ending August 2020 – would “add a complementary layer of expertise” to the consulting business…

MMC Fund Administration Asset valuation, unit pricing, fund accounting and registry services – providing the engine room of the investment sector.; MMC Wealth Administration Investment administration, portfolio reporting and custodial services – setting clients free to accelerate their success.; MMC Fund Custody Safekeeping, trade instruction and matching, corporate actions and …

Specialist consulting firm, Mosaic Financial Services Infrastructure, has named Jigs Jamnadas in the newly created position of chief operating officer (COO).

Mosaic Financial Services Infrastructure named Catherine Fletcher as partner in February – the fifth to earn the ranking in the fast-growing Auckland specialist consultancy firm.

Fletcher comes to Mosaic following an almost 11-year career at ASB where she was most recently general manager payments, operational support and service.

RegTech, digital transformation and the move to the cloud accelerate, financial services businesses will need guidance from independent sector specialists like Mosaic to help them make the most appropriate choices.

Even before the global economy went viral this March, the Reserve Bank of NZ (RBNZ) was softening up the market for negative interest rates – or at least the idea of it.

Despite the ever-present threat of pandemics, and a few trial runs (SARS, MERS and Ebola, for example), he said many BCPs focused on a disaster recovery event where the entire business shifted to a new site, instead of the prolonged work-from-home scenario playing out now.

Mike Stobbs: Mosaic partner. Specialist consulting firm, Mosaic Financial Services Infrastructure, has doubled its partner ranks in under a month with a second new appointment in February.

Stechman left Tower in 2008 following an 18-year career with the seminal NZ investment business, now part of Fisher Funds. He was also a trustee of the National Provident Fund and panel member for Financial Services Complaints Limited (FSCL).

For example, the IRD would be required to start accruing interest on member and employer KiwiSaver contributions from the exact time of payment until funds reach the end-scheme destination.