Governor Adrian Orr says RBNZ & FMA team to conduct on-site bank visits with life insurers' submissions due Friday, as probe into conduct & culture of financial services sector continues

The FMA's Rob Everett & RBNZ's Adrian Orr probe banks, by Jacky Carpenter.

Here's a statement from the Reserve Bank on its ongoing probe of financial services companies' conduct and culture in partnership with the Financial Markets Authority.

Bank conduct and culture review - on site visits. Life insurance companies provide their submissions

The joint Financial Markets Authority and Reserve Bank review of conduct and culture in the New Zealand banking sector is progressing rapidly.

“We will assess whether the conduct and culture issues being aired during the Australian Royal Commission of Financial Services are present here,” said Reserve Bank Governor Adrian Orr.

“A combined FMA/RBNZ team are working through the submissions received from banks in response to our inquiries. This is a significant task, but necessary to create a fact-based, fair, platform,” Mr Orr said.

The team working on this are now beginning to notify banks of when and why we will visit them, primarily to assess the validity of their written responses.

“It was always our intention to do so, with targeted visits more effective than a simple download of the data and open-ended questioning.

“The banks have been very open, both management and boards, and we look forward to this continuing. At this stage, it is too early to draw broad conclusions. There are many areas where further evidence is needed, as well as proof of intent where gaps have been identified and are being closed,” Mr Orr said.

Working with the banks in an open, safe, environment is important to ensure the team of reviewers receive frank views and information. The life insurance companies are providing their submissions on the same issues, with the due date today. [June 22]. A similar process will be followed.

We are committed to ensuring high standards of conduct and culture in our financial system, and this exercise is a timely check in a fair and managed way.” said Adrian Orr.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.