In a rather impassioned update speech at the recent Financial Services Council conference, chief executive Richard Klipin announced the organisation was turning itself into a lobby group.
He noted FSC had “not been a policy shop” in recent years, but the time had come for change.
The FSC, he said, “needs to lead.”
And in more grandiose terms he described the change as “a nation building project.”
“People need to come with us.”
It’s probably fair to say the financial services sector has lacked a bit of leadership over the years.
The sector has been through massive regulatory changes at many levels and lobbying looks like it was reasonably fragmented.
The FSC – well its predecessor organisations - had engaged in lobbying before. During these times the organisations had been headed by a couple of people who had been involved in Parliament and politics. That seemed to suggest that lobbying could be effective.
The trouble turned out that all the members of these groups were not always on the same page.
A classic example is when the organisation lobbied ministers over some fund issues, then one of its key members went off to the Minster of Finance and put up a counter-argument.
Financial services is a competitive business and fund managers and life insurers are not always on the same page.
If the FSC really wants to be lobby group it could well start by expressing a view on the National Party’s plans to repeal the CoFI legislation.
When we asked the FSC they kicked for touch (a reasonable analogy with the Rugby World Cup in full swing). Klipin said the body was being neutral and not commenting.
This is a ludicrous position following the FSC proclamations a few week earlier.
Good Returns understands one of the FSC’s many committees met last week to discuss CoFI. Surely there was something more substantial than what boils down to a no comment.
The FSC response is also at odds with previous statements. When National announced its silly splitting KiwiSaver policy FSC put out a media release in response.
Coming back to CoFI the financial sector deserves to know whether manufacturers (banks and life insurance companies) support the legislation or want to see it go.
They have already spent tens of millions of dollars getting ready for.
My view is clearly expressed here.
Most FSC members are likely to be National supporters. They shouldn’t be afraid to criticise a policy from a party they support.
For the good of the industry the FSC should articulate its position on CoFI.
