Policies - Advice Related

Policies

6 Jul

Written By Rupert Gough

Advice Process

OUR ADVICE PROCESS

Our 6 Step Advice process is described in detail on the Intranet.

For Risk and Investment Advisers

For Mortgage Advisers

CONTROLS

Client File Reviews

Client file reviews completed to check the process is being followed and to identify any areas of concern or failures in this process.

Responsibility: QA Administrator

Frequency: Monthly

Training

Training provided at induction and annually on policies, processes, controls, and the process

Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages

Frequency: Induction and Annually

Replacement Business Policy (Risk)

🛑 CPD Point Available For This Section 🛑

INTRODUCTION

Replacement business represents conduct and client risks for MTG that needs to be managed effectively.

For Risk Advisers this policy must be read in conjunction with MTG’s ‘Risk Replacement Advice Practice Standards’

Potential harms for clients could include:

Clients being over/under insured.
Clients have claims denied that might have been accepted under original policies.
Clients lose benefits they might have otherwise received under original policies.
Replacing policies purchased at a younger age may result in more expensive premium or limited benefits.
Increased likelihood of exclusions or limitations associated with changes in health, lifestyle or occupation that have occurred since the original policy has been taken out.
Inadvertent non-disclosure which reduces or annuls cover.
Potential to reset any waiting periods for benefits.
Policy benefits could attract a loading on a new policy that weren’t subject to a loading on an existing policy, raising the long-term cost of the new policy.

POLICY STATEMENT

When we are actively engaged with a client in relation to replacement business, we expect advisers to actively identify areas of potential client harm and use the business processes (outlined below) to mitigate the risks.

Doing so will enable us to meet our obligations under the Code of Professional Conduct and ensure that our client’s best interests are put ahead of our own.

We will ensure full disclosure is provided at all stages of the replacement business process;
We will ensure we consider any conflicts of interest and manage in accordance with MTG’s conflict of interest policy and practice standards;
We are aware of and adhere to FMA’s view of conduct;
We will use competence, knowledge and skill, this includes keeping good records of our advice and recording client communications, for the client’s benefit, and providing these to the client to help them with their decision-making;
We will only proceed in replacing a product if it is in the client’s best interest and the client is in full agreement and has been made fully aware of any risks, detrimental effects, or potential consequences.

KEY PROCESSES

We must conduct a comprehensive comparison between the original and proposed product (e.g. policy), identify features, benefits and risks related to replacing the product. The financial advice should be presented to the client in a format that the client can easily understand. In particular the risks of switching providers or cancelling a product should be highlighted.

The types of comparisons could include: benefit periods; wait periods; sums assured; premium structures; differences in covered medical conditions, existing or new exclusions and/or loadings, and any costs to change products or providers.

The financial advice must not be driven by any conflicts of interest such as incentives, bonuses or soft dollar commissions. Where a conflict arises, we have a duty to act in the best interests of the client.

REFERENCES

Code of Professional Conduct
– Part 1 of the Code of Conduct sets out the minimum standards of ethical behaviour, conduct and client care.
– Part 2 of the Code of Conduct sets out the minimum standards of competence, knowledge and skill.
431J  Duty to ensure client understands nature and scope of advice
431K  Duty to give priority to client’s interests
431L  Duty to exercise care, diligence, and skill
431M Duty to comply with code of conduct

CONTROLS

File Checks
How implemented: Systemised client file QA checks completed and diary notes & SOA’s checked to confirm a comprehensive comparison between the original and proposed product has been performed
Responsibility: QA Administrator

Regulatory Returns

We monitor replacement business activity bi-monthly through the SMT and report annually to the FMA the volume of insurance replacement and KiwiSaver switching activity

Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages

MTG Risk Replacement Advice Practice Standards
How implemented: All advisers receive training on the policy and MTG’s Risk Replacement Advice Practice Standards
Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages
Frequency: Annually

See related policies

Conflicts of Interest Policy
Record keeping

REFERENCES

Replacement Business Policy (KiwiSaver)

🛑 CPD Point Available For This Section 🛑

INTRODUCTION

Replacement business represents conduct and client risks for MTG/Mortgage Lab that needs to be managed effectively. Every year we are required to formally report to the FMA the level of KiwiSaver switching activity that takes place across our business as part of our regulatory return.

The Financial Markets Authority (FMA) has highlighted several potential harms associated with replacing a KiwiSaver provider or product. These potential harms can impact both the investor and their long-term financial well-being.

Inappropriate Investment Choices

Switching KiwiSaver providers or products can lead to an investment that may not align with the investor’s risk profile, investment goals, or time horizon. For example, moving from a conservative to a growth fund (or vice versa) without fully understanding the implications could expose the investor to either unnecessary risk or insufficient growth potential.

Loss of Accumulated Benefits

Some KiwiSaver providers offer unique benefits, such as lower fees, insurance coverage, or financial advice, which may not be available with a new provider. Replacing a KiwiSaver product could mean losing these benefits, which may not be immediately apparent but could have a long-term impact on the investor’s savings.

Disruption of Contributions

Transferring KiwiSaver funds from one provider to another can cause temporary delays or disruptions in contributions. This could affect both employee and employer contributions, as well as government contributions, potentially impacting the investor’s savings trajectory.

Increased Fees or Unfavourable Fee Structures

The new KiwiSaver product may have different fee structures, including entry, exit, or management fees, which may be higher than those of the current product. Higher fees can erode savings over time, reducing the overall return on investment.

Impact on Fund Performance

KiwiSaver products vary significantly in terms of fund performance. Switching to a product with lower historical returns or a different investment strategy could result in lower earnings. Since past performance is not a guarantee of future results, this switch could potentially harm long-term savings.

Tax Implications

Depending on the structure of the new KiwiSaver product, there may be differences in tax treatment, which could impact the net return. Without proper understanding, an investor might end up in a product that is less tax-efficient for their situation.

Short-Term Focus on Market Timing

Some investors switch KiwiSaver products to capitalize on short-term market conditions, which can lead to poor timing decisions. Attempting to time the market by switching funds can lead to crystallizing losses or missing out on potential future gains.

Uninformed or Inadequate Advice

If the decision to switch is made based on inadequate or inappropriate advice, this could lead to suboptimal choices. For example, an investor may not fully understand the new product or may be swayed by incentives offered by the new provider rather than focusing on long-term benefits.

Potential for Conflict of Interest

There is a risk of receiving advice that may not be in the best interest of the investor if the advisor has a financial incentive for recommending a particular product. This could lead to switching to a product that is less suitable for the investor’s needs.

POLICY STATEMENT

Doing so will enable us to meet our obligations under the Code of Professional Conduct and ensure that our client’s best interests are put ahead of our own.

We will ensure full disclosure is provided at all stages of the replacement business process;
We will ensure we consider any conflicts of interest and manage in accordance with MTG’s conflict of interest policy and practice standards;
We are aware of and adhere to FMA’s view of conduct;
We will use competence, knowledge and skill, this includes keeping good records of our advice and recording client communications, for the client’s benefit, and providing these to the client to help them with their decision-making;
We will only proceed in replacing a product if it is in the client’s best interest and the client is in full agreement and has been made fully aware of any risks, detrimental effects, or potential consequences.

KEY PROCESSES

Any recommendation to switch providers must be supported by an advice document considering the clients risk profile, consideration for how the investment strategy is based on the clients risk tolerance, investment horizon (short, medium, long term) and supporting evidence for why you have recommended a switch in provider (rather than a change of fund with the existing provider). Supporting evidence for the justification of the switch of manager must be provided

REFERENCES

CONTROLS

Regulatory Returns

We monitor replacement business activity bi-monthly through the SMT and report annually to the FMA the volume of insurance replacement and KiwiSaver switching activity

Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages

See related policies

Conflicts of Interest Policy
Record keeping

REFERENCES

Disclosure Policy

🛑 CPD Point Available For This Section 🛑

INTRODUCTION

Disclosure is the act of making something known, such as any relevant risks, fees, commissions or information about an adviser’s experience and qualifications. The principle behind disclosure is to provide the essential information that our clients need to make informed decisions.

When providing regulated financial advice, financial advice provider licensees and their financial advisers must make ongoing disclosure throughout the advice process. We must provide disclosure when we give product or service information to our retail clients. If we provide a service to a client, we must disclose certain information.

The information we provide must always be presented in a clear, concise, and effective manner.

POLICY STATEMENT

Disclosure will be made as it becomes relevant to the client at certain points in the advice process. This will allow our clients to receive the information that they need when they need it. We have the flexibility to develop disclosures that fit within our processes.

There are four key stages when disclosure information must made available to the client:

Public disclosure: we will disclose general information on our website or upon request. This information is to help the public with choosing a financial advice provider that will meet their needs. The information we disclose includes information about our licence, the types of products we can advise on, the fees that may be payable and commissions or conflicts of interest that may apply.
When the nature and scope of the advice is known: our Financial Advisers will disclose information about themselves, the types of financial advice products the advice will be given about, the key product providers, any material limitations of the advice, any adverse history of the Financial Adviser, how the adviser gets paid and how any conflicts of interest will be managed. This information is disclosed to help clients decide whether to seek, obtain or act on advice from a particular
When the advice is given: this will be followed by more detailed information that relates specifically to the client when making a recommendation. This includes details of fees and any relevant commissions that will apply, specific conflicts of interest and the duties that the adviser must adhere to. This information is disclosed to help clients decide whether to act on the advice given.
When a complaint is made: when they receive a complaint, our advisers will inform clients of their ability to access redress via the relevant approved dispute resolution scheme.

This policy applies to all MTG contractors and staff involved with providing financial advice to our retail clients.

KEY DISCLOSURE PROCESSES

Licensing information
(On our website) A summary of our licensing status as a financial advice provider and a brief summary of any conditions on the licence that may limit or restrict the advice that can be given

Nature and scope of the financial advice service
(On our website) Information relating to the types of advice we give, the financial advice products that can be advised on, and whether there are any limitations (including on the product providers whose products can be advised on).

Fees or expenses
On our website: an explanation of any fees that might be charged for financial advice, including the circumstances in which they may be payable.
When nature of advice is known: information regarding any fees or expenses that may need to be paid in relation to the giving of financial advice, including the circumstances when they are payable and the amount of any fees (if known) or an estimate (if practicable).
When financial advice is given: if not previously disclosed, information regarding any fees or expenses that may need to be paid in relation to the giving of financial advice, or following the advice, including the circumstances when they are payable and, the amount of any fees (if known) or an estimate (if practicable).

Conflicts of Interest and incentives
On our website: a description of any conflicts of interests, an explanation of the circumstances in which commissions, renewal commissions or other incentives will be received and a brief explanation of how any conflicts will be managed.

Reliability history
When nature of advice is known: information regarding any recent instances of being publicly disciplined, relevant convictions or civil proceedings and, in the case of our financial advisers, any recent bankruptcies or insolvencies.

Identifying information
When nature of advice is known: information to help identify the financial advice provider, financial adviser or nominated representative.

Availability of information
On our website: we provide a statement to the effect that the client is able to request the information to be provided in a hard copy or an electronic copy.

Complaints handling and dispute resolution
On our website: information regarding the internal complaint’s procedure and external dispute resolution process.

Duties Information
On our website: a description of the duties in the FMC Act that the person is required to meet.

CONTROLS

Review client files for disclosure
How implemented:
– Advisers have completed disclosure requirements at all times.
– A systematic audit process regularly checks on prepared disclosures.
– Disclosure is built into the advice process in Trail
Responsibility: QA Administrator

Frequency: Monthly

Complaints
How implemented: Complaint handling procedures and DRS disclosed
Responsibility: QA Administrator

Frequency: Monthly

Website Review
How implemented: Website and or marketing material (if no website) to be reviewed at induction to ensure publicly available information is available and compliant as outlined in the disclosure requirements
Responsibility: Rupert Gough

Frequency: Annually

REFERENCES

FMC (Regulated Financial Advice Disclosure) Amendment Regulations 2020
New regulations setting out the requirements.
www.legislation.govt.nz/regulation/public/2020/0132/latest/ LMS177125.html

Ministry of Business, Innovation and Education (MBIE) Guidance Published June 2020
Summary of Disclosure Requirements in the New Financial Advice Regime
www.mbie.govt.nz/dmsdocument/11508-regulations-setting-out- disclosure-requirements-in-the-new-financial-advice-regime-overview

Dispute Resolution Scheme Rules

Read the rules for FSCL here: https://fscl.org.nz/publications/fscl-terms-of-reference/

The guide to handling complaints can be found here: Guide to handling complaints – advisers

Research and Product Selection Policy

🛑 CPD Point Available For This Section 🛑

PRODUCT SELECTION

We select and recommend to our client’s quality, reliable and defendable product solutions.

We ensure that the client’s needs are acknowledged and that we fully understand the type of advice that the client is looking for. We complete a Statement of Advice to evaluate the client’s position and needs for short, medium and long term.

We prioritise our clients’ interests ahead of our own if any potential conflicts arise we will only make a recommendation based on our research.

If our client has an existing product in place, we compare products to confirm that there would be no loss of benefits or cover by any potential change and explain why we may be recommending to confirm if there are any impacts to benefits or cover by any potential change and what the advantages and benefits are.

Refer to our Replacement Business Policy.

POLICY STATEMENT

MTG/Mortgage Lab follows a process of due diligence when selecting product providers. When considering a product provider we consider a range of factors which include:

Is the company licenced to provide financial products in NZ
Do we hold a suitable and signed distribution agreement
Advisers are required to complete accreditation training
Company reputation
Service
Claims paying
Technology
Price
Product design and how it would protect the client at time of claim e. the detail within the policy wording
Underwriting processes, rules and relationships, flexibility and adjustability
For Mortgages, we only recommend product providers that are on our Approved Product Provider Register (access via company intranet).

KEY PROCESSES

We document our rationale for selecting a product provider
We only provide advice on products and areas where we are competent to do so
We undergo continuous training to understand the products and services we provide advice
We provide enough information about the financial product being recommended to enable a client to make an informed decision.

Inability to offer approved product or service

In the event that a suitable product solution cannot be provided or we cannot offer further advice, the client will be informed in writing.

On the occasions where we do not have the necessary expertise or capacity to advise a client, we will refer them to an appropriate specialist. Whether we are able to refer a suitable specialist or not, we will give the client clear written advice that we are NOT able to advise them in the particular area, and who they should contact if they wish to receive such advice.

CONTROLS

Statement of Advice
How implemented: Advisers Statement of Advice are checked to confirm that they are selecting products only approved by MTG
Responsibility: QA Administrator

Training Register
How implemented: Training register to be checked for product accreditation
Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages

Product Providers
Due diligence is required to be followed and documented whenever a new provider is added to our supplier options
Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages

See related policies
Conflicts of Interest Policy

REFERENCES

FMA
Licensing requirement

FMC Act 2013
431K Duty to give priority to client’s interests

Code of Professional Conduct for Financial Advice Services
Code Standard 3. GIVE FINANCIAL ADVICE THAT IS SUITABLE
A person who gives financial advice must ensure that the financial advice is suitable for the client, having regard to the nature and scope of the financial advice.
If the financial advice includes a comparison between two or more financial advice products, the financial advice should be based on an assessment of each product.

Client Servicing Policy

INTRODUCTION

We are an Advice-based business. Our approach involves a carefully designed process that fosters strong, positive relationships between our clients and our team, starting with the initial onboarding phase which sets the foundation for a long-term collaboration.

We recognise that our clients financial needs may change many times through their life journey, and servicing is an important component of a client’s interaction with MTG. Regular contact plays a crucial part in customer satisfaction and enables us to ensure that our advice remains relevant and our clients receive the necessary information and assistance they require.

POLICY STATEMENT

We will proactively initiate contact with our clients through a diverse range of channels and methods including calls, emails, newsletters, online or face to face meetings. The frequency of a review will relate to the nature of the products they hold with us, and the clients preference.

We will endeavour to engage with the client personally at least once a year by either phone or email. Vulnerable clients will be identified and offered more frequent reviews when it is deemed necessary.

KEY PROCESSES

As part of our onboarding process, we discuss our client servicing commitment with the customer and confirm with them their preference, nature and frequency of the servicing timeframe.

To ensure comprehensive support, all clients will be systematically offered an annual review of their products with their financial adviser. This process is facilitated through an automated email, which guarantees that our clients receive at least one review per year.

In addition to the annual reviews, we also provide our clients with continuous phone and email access to a dedicated team of specialists for policy servicing and claims.

CONTROLS

File reviews
How implemented: Review of client files to ensure adequate documentation of reviews and alterations
Responsibility: Business Risk Manager

Servicing Team
How implemented: Specialist team dedicated to all servicing processes including claims for all MTG clients
Responsibility: National Relationship Manager

REFERENCES

Code of Professional Conduct for Financial Advice Services
Part1: Ethical Behaviour, Conduct and Client Care

FMCA 2013
431M – Duty to comply with the code of conduct

Client Onboarding Policy

🛑 CPD Point Available For This Section 🛑

INTRODUCTION

Our on boarding process is the way we introduce and welcome new clients to the MTG/Mortgage Lab way of doing business. The purpose of this Client Onboarding Policy is to outline the process by which new clients are engaged, assessed, and onboarded. This policy ensures compliance with all relevant legislation, including the Financial Markets Conduct Act 2013 and the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.

Onboarding is the way we ensure that the client gets enough information to make informed decisions about using our services, and we get enough information from them to meet our obligations.

POLICY STATEMENT

Our procedures for bringing new clients on board must ensure that they get enough information to make informed decisions about the financial services we offer.

This includes information about the business and our services, and ideally should include a discussion about our Vision and Purpose.

KEY PROCESSES

6 Step Advice Process

Our 6 Step Advice process is described in detail on the Intranet.

For Risk and Investment Advisers

For Mortgage Advisers

Onboarding Processes to MoCRM & GetTrail

Our CRM onboarding processes are described in detail on the Intranet

For Risk Advisers / Admin

For Mortgage Advisers

Application Process

Submission of Applications

Assist the client in completing life insurance or mortgage applications, ensuring all necessary documentation is accurate and complete.
Submit the application to the chosen insurance provider or mortgage lender on behalf of the client.

Monitoring and Follow-up

Monitor the progress of the application and provide the client with regular updates.
Liaise with insurers or mortgage providers to address any additional requirements or questions.

Compliance and Record Keeping

AML/CFT Compliance

Comply with New Zealand’s AML/CFT obligations by maintaining accurate records of identification, risk assessments, and transactions.
Ensure that ongoing due diligence is performed on clients, particularly those deemed high-risk.

Privacy and Data Protection

Handle all client information in accordance with the Privacy Act 2020, ensuring confidentiality and security of personal data.
Use secure systems to store client data and restrict access to authorized personnel only.
https://www.mauricetrapp.co.nz/privacy-policy
https://mortgagelab.co.nz/privacy-policy/

Onboarding Completion

Set up periodic reviews (e.g., annual reviews) to ensure that the client’s life insurance and mortgage arrangements remain aligned with their changing circumstances.

Ongoing Client Support

Offer ongoing client support by providing updates on market conditions, product changes, and opportunities for financial reviews.
Ensure that the client is informed of any regulatory or legislative changes that may impact their financial arrangements.

Complaints Handling

Clients are informed about the complaints process during onboarding. Any complaints are addressed promptly in accordance with our Complaints Handling Policy, ensuring fair and efficient resolution.

CONTROLS

6 Step Advice Process

How Implemented: All advice steps completed and docs stored in Mo/Trail

Responsibility: QA Assessor

Training

How implemented: All advisers and staff receive training on this policy

Responsibility: Head of Risk & KiwiSaver/Head of Mortgages

REFERENCES:

Code of Professional Conduct for Financial Advice Services
Part 1, Ethical Behaviour, Conduct and Clients Care (All code standards under part 1 apply)

FMC Act 2013
Part 2 – Fair Dealing

FMC Act 2013
431J – Duty to ensure client understands the nature and scope of advice

Adviser Training & Competency Policy

INTRODUCTION

This policy ensures the employed and contract advisers providing advice under our licence meet the competence, knowledge and skill requirements of the Code of Professional Conduct as well as describing our framework for maintaining competency and ongoing professional development.

POLICY STATEMENT

Training and upskilling are critically important for our staff/contract advisers, our clients and for the business. We aim to ensure our team are appropriately trained and have the necessary competence, knowledge and skill to perform their roles effectively and professionally. This will help both them and the business to perform well, protect our customers and to meet our regulatory and conduct obligations.

KEY PROCESSES

General Competence, Knowledge and Skill

All new and existing MTG advisers (either contract or employed) are required to hold the NZCFS (Level 5) or alternative (independently verified by NZQA) as described in the Code of Professional Conduct before providing advice to MTG clients. This includes the relevant core and specialist strands for their relevant area of advice/expertise.

Keeping Competence, Knowledge & Skill up to date.

All MTG Advisers (staff or contract) will be required to complete a Professional Development plan annually. The learning activities described in the plan should ensure that advisers maintain competence, knowledge and skill for the advice they provide: Our Professional Development approach requires advisers to attain a minimum of 40 hours relevant structured CPD every year and MTG will also –

Identify, create, and provide opportunities for professional development and training to enhance and build the capability, skills, excellence, and professionalism of staff/contractors
Set aside regular time for reviewing of regulator and product Throughout the CPD period (one year) advisers who attend 80% of our weekly sales team video conference calls for business and supplier updates will receive 20 structured CPD hours if this attendance rate is achieved.
Monitor attendance of seminars and related relevant training to gather required CPD hours
Advisers will be required to complete online modules and quizzes to test knowledge, and maintain MTG and Product Provider Accreditation requirements. Relevant CPD hours will be allocated for
We will maintain and keep current an annual professional development plan for every adviser

MENTORING PROCESS – HOME LOANS

New advisers to Mortgage Lab are mentored according to the mentoring process as outlined in Guru. This process includes details on access to knowledgebase, onboarding, knowledge testing and mentoring with Home Loans L&D manager (Brett).

CONTROLS

Teamsplus/Training register
How implemented: Teamsplus and/or training register updated after any training carried out, including number of CPD hours gained for the relevant period
Responsibility: L&D Co-Ordinator – Ongoing

PDP
How implemented: All advisers are required to complete an Annual PDP
Responsibility: L&D Co-Ordinator (before end February annually for calendar year)

REFERENCES:

Code of Professional Conduct
Part 2: Competence, Knowledge and Skill (Code standards for part 2 apply)

FMC Act 2013
431L – Duty to exercise care, diligence, and skill
431I – Duty to meet standards of competence, knowledge, and skill

ADDITIONAL INFO:

Where do you start?

You should set your plan each calendar year by identifying any gaps in your knowledge that you should consider enhancing.
Ensure that you allow sufficient time each week to participate in regular learning opportunities, such as our KAN webinars (mortgage advisers), conferences, etc.
Over the course of the year you should complete relevant training to upskill yourself and your team with specific knowledge that is relevant to the area of financial advice that you provide (mortgages, insurance, investments).
Product knowledge also forms part of this requirement so keep reading the updates from your providers.

What areas of competency should you aim for?

Mortgage (structures/ownership/tax implications)
Insurance (personal risk/business risk/general risk/tax implications)
Investment (portfolio construction/risk profiling clients/structures)
KiwiSaver (for deposit first home/retirement planning)
CRM
Regulations and legislation
- FMCA/FSLAA new obligations for Financial Advice Providers
- The Code of Professional Conduct for Financial Advice Services
- Disclosure requirements
- Privacy Officer training (Privacy Act 2020)
- AML/CFT – customer due diligence
- CCCFA 2003
Professional Ethics
Compliance officer training
The Advice Process
Personal Development (software/Xero/planning/Leadership)
Business Development (strategic planning for growth/succession planning)
Estate planning basics
Taxation basics
Directors responsibilities
Governance
Complaints handling training
Record keeping
Business continuity planning
Health and safety
Good Conduct

Desired outcomes

You meet your obligations for the Code regarding competence, knowledge and skill and have a recorded log of your training in your register to evidence what you have completed.
You can demonstrate up-to-date knowledge relevant to your area of advice if challenged about your advice by a client or a third party (FMA, Disputes Scheme Provider, KAN).
You learn something helpful and grow your knowledge and skills.
You spend time working on your business strategy and achieve great results.

How else can you meet the requirements?

Complete a NZ Certificate in Financial Services (Level 5) Version 2 course.
Hold the relevant specialist strand for the advice you provide (e.g. RPL, LD&H, Investment).
Undertake specific training on the new regulatory requirements by attending webinars and training courses.
Keep up to date with your product providers requirements and policies.
Be across any changes as they occur in the industry by subscribing to communications from FMA and other industry or Government bodies (Financial Advice New Zealand, Commissioner for Privacy, MBIE).

Privacy Policy

🛑 CPD Point Available For This Section 🛑

1. Introduction

When a client uses our services, they are trusting us with their personal and financial information. We understand that this is a significant responsibility, and we work diligently to protect their information in accordance with the Privacy Act 2020 (the “Act”).

This policy outlines how we collect, use, store, and disclose personal information relating to clients, staff, contractors, and third parties. It also provides operational guidance to staff for handling privacy-related issues in day-to-day work.

2. Scope

This policy applies to:

Personal information about clients, prospective clients, and claimants
Personal information about staff, job applicants, and contractors
Any situation where personal information is collected, stored, accessed, or disclosed by Maurice Trapp Group or its subsidiaries

3. Our Commitment

We are committed to:

Handling personal information lawfully, fairly, and transparently
Complying with the 13 Privacy Principles under the Act
Ensuring all staff are trained and aware of privacy obligations
Responding promptly to privacy breaches and complaints
Assessing third-party providers (including overseas vendors) for privacy compliance

4. Collecting Personal Information

We collect personal information through:

Direct contact with clients, including online forms, email, telephone, or in person
Authorised third parties, such as insurers, lenders, employers, and medical providers
Publicly available sources

We only collect information necessary to carry out our business functions and provide services lawfully.

5. Employee and Contractor Privacy

We also collect and manage personal information about staff and contractors. This may include contact details, employment history, payroll and tax records, performance data, training history, and compliance requirements.

All staff information is treated with the same level of care and security as client data and is only accessible to authorised staff with a genuine business need.

6. Using and Disclosing Personal Information

We may use or disclose personal information for the following purposes:

To provide advice, arrange insurance or lending, and manage claims or applications
To verify identity and prevent fraud
To meet legal, regulatory, or licensing requirements (e.g. FMA, DIA)
For internal training, compliance, and auditing
With service providers, such as IT vendors, cloud storage, legal advisers, and compliance consultants
With co-insureds or co-applicants named on the same product

We will not use or disclose personal information for any other purpose unless:

The individual has consented
It is required or authorised by law
It is necessary to prevent or lessen a serious threat to life or health
It is being shared in a de-identified or aggregated format

7. Overseas Disclosure and Cloud Services

If we engage an overseas-based service provider (e.g. cloud storage), we must first assess whether they offer comparable privacy safeguards to New Zealand law. This includes:

Reviewing contractual terms
Checking data encryption and access controls
Ensuring data is only stored or accessed in permitted jurisdictions

We will not proceed with vendors who cannot meet these standards.

8. Security and Retention

We take reasonable steps to ensure personal information is:

Protected from unauthorised access, loss, misuse, or disclosure
Accessed only by staff with legitimate business reasons
Backed up and recoverable in case of data loss
Securely disposed of when no longer required

Client records are generally retained for at least seven years, in line with legal obligations.

9. Access and Correction Requests

Clients and staff have the right to request access to their personal information and to request corrections if the information is inaccurate. These requests must be:

Acknowledged promptly
Verified (identity confirmed)
Actioned within a reasonable timeframe

If we decline a correction request, we must allow the individual to add a statement of correction to the record.

10. Privacy Principles (Summary)

We comply with the 13 principles of the Privacy Act 2020:

1 Purpose – Collect only what’s necessary for a lawful, business-related purpose

2 Source – Collect directly from the person where possible

3 Transparency – Inform individuals about why and how we collect their information

4 Manner – Do not collect information unfairly or intrusively

5 Storage – Keep personal information secure

6 Access – People can request to see and correct their personal information

7 Accuracy – Ensure information is correct before using it

8 Retention – Don’t keep personal information longer than needed

9 Use – Use only for the purpose it was collected

10 Disclosure – Disclose only when legally justified or with consent

11 Overseas Disclosure – Ensure offshore providers meet NZ privacy standards

12 Unique Identifiers – Avoid using others’ unique identifiers unless permitted

13 Information Sharing – Manage information sharing lawfully and carefully

11. Privacy Breaches

A privacy breach occurs when there is unauthorised access, disclosure, loss, or misuse of personal information. Serious breaches must be reported to the Office of the Privacy Commissioner and affected individuals.

Breach Process:

Contain – Stop the breach and prevent further risk
Assess – Understand the scope and risk
Notify – Inform the Privacy Officer, MD, and Commissioner (if serious)
Prevent – Implement corrective actions to avoid recurrence

All breaches and near misses must be recorded in the Breach Register.

12. Key Controls and Responsibilities

ControlImplementationResponsibleClient record security checksRegular audits of file storage and access controlsHead of OperationsStaff training on the Privacy ActAnnual training via MoProHead of Ops / Head of Insurance & KiwiSaver / Head of MortgagesBreach RegisterAll incidents logged and reviewed regularlyHead of OperationsPrivacy statementsIncluded in all client documents and reviewed regularlyHead of Operations

13. Safe Work Practices (Reminders)

Double-check email recipients before sending client files
Confirm identity on all inbound calls before disclosing details
Lock devices when unattended, especially in public spaces
Do not discuss client information in shared environments (cafes, public transport)
Use MFA and strong passwords for systems access

14. Privacy Officer and Escalation

The designated Privacy Officer is responsible for overseeing privacy compliance, breach response, and managing complaints or requests. Breaches should be escalated first to the Privacy Officer, and where serious, to the MD and Privacy Commissioner.

Related Policies

IT Systems and Security Policy

REFERENCES

Privacy Act 2020
www.legislation.govt.nz/act/public/2020/0031/latest/LMS23223.html

Office of the Privacy Commissioner
www.privacy.org.nz

Code of Professional Conduct – Standard 5
Protect Client Information

Code of Conduct & Ethics Policy

Our purpose at Maurice Trapp Group is to help our clients have “A Certain Future”. What this means to individuals will differ, dependent on their ages, their income, their expectations, their health and other circumstances. However, what should never differ is the way that we, as members of MTG, conduct ourselves on all occasions, with integrity in an open honest and fair way. By holding to our values of Care, Share and Dare, we achieve that ambition of our purpose, and allows us to be proud to work with the team of MTG.

This Code of Ethics has been authorised by the MTG Board and sets out the standards that we set ourselves and expect from all who come to work in our environment. We know that by living to these behaviours, we will build trust and create a business that is fun and rewarding to work in. The outcome of maintaining these standards is knowing that we are doing the right thing by our customers, our suppliers, our shareholders and other stakeholders.

Two adages that are relevant to our Code of Ethics, and that I hope will resonate with you, are:

“How would I like to be treated, if I was in this situation?”
“If it is to be, then it’s up to me!”

Please read this Code of Ethics and refer to it frequently. Every one of us at MTG is responsible for safeguarding these standards. Together, as a team with a strong and positive culture, we can make a difference to New Zealand.

- Maurice Trapp Chairman, June 2023

INTRODUCTION

This Code provides us with a framework for working within the Maurice Trapp Group and its related businesses; by being consistent with our values, principles and culture. It provides a guideline on decision-making and handling areas of risk. It does not provide a complete list of potential incidents or risks, because we rely on every MTG team member to employ their own good judgement in considering what the right thing to do is.

All at MTG, including contractors, employees and directors, are expected to uphold and follow this Code, as well as other MTG policies and guidelines.

If you are unsure about anything or have concerns, please speak with your immediate leader or to senior management. It is important that we expect the same standards of behaviour from each other and, that we hold each other accountable for following and upholding this code. This should not be onerous, but rather, an expectation that this is how I would like to be treated.

THE RIGHT WAY

At MTG, we require each other to act professionally, ethically and responsibly, at all times. We respect the needs and requirements of others, and aim to provide a customer outcome that exceeds their expectation.

Our roles and duties at MTG include:

Applying MTG’s Values and Behaviours
Valuing diversity and inclusion, and treating all people with dignity and respect
Considering the environment impacts of our decisions and minimising, when we are able, MTG’s environmental impact
Operating efficiently, communicating effectively and applying robust risk management practices
Maintaining the highest standards of service and delivery of quality products that achieve appropriate results for our clients
Conducting ourselves in a way that demonstrates our honesty and integrity on all occasions
Always acting in the best interests of MTG, while taking into account its shareholders and other stakeholders
Valuing individuals’ differences of opinion and treating all people with respect
Dealing fairly and honestly with all people and organisations
Helping someone develop skills and learnings
Not entering into transactions or making promises on MTG’s behalf that MTG is not able to or does not intend to honour
Not using MTG’s property, (including MTG’s name), information or position for personal
Not taking any opportunity discovered through the use of MTG property, information or position for our own personal advantage.

OUR VALUES

Care
For our clients: Exceed customer expectations For each other: Work as a team and treat each other with respect and courtesy For the business: Participate and contribute For ourselves and our families: By recognising when step back, slow down and seek advice or help
Share
Our Knowledge and Experience	Our Integrity
Our Attitudes: Lead by example	Our Reliability: Pursue excellence
Our Respect: Listen and communicate	Our Wins
Our Trust
Dare
To Lead	To be Courageous
To Challenge	To back Ourselves and Each other – Have fun
To Question

The MTG Board signs off every year on a Board Charter and Principles. Ultimately, the directors are the leaders of the Company, but we have always had the intent that we would encourage and build leadership throughout our whole team.

Within that Board Charter document, we state the following:

“We ask all our stakeholders to comprehend and acknowledge our values of Care, Share and Dare.”

Care is epitomised by succession, (for families and businesses, for health and wealth), and through taking the long-term view.

Our founding shareholders have been willing to relinquish short-term gain, to achieve enduring returns and business growth. We built the business so that all our stakeholders have a better world to live in; for themselves today and future generations.

Sharing is an understanding that all our actions and accomplishments are integrated and inter- connected. We aim to achieve win-win situations with all our transactions.

Our ideal is for all our stakeholders to hold an ownership mentality with MTG. Within the business we take responsibility to create an inclusive and better future for all stakeholders. The catch phrase, “If it is to be, it’s up to me” is shared with our team throughout the business.

And Dare is about building resourceful resilience. In this rapidly changing world, (think Covid, recession and advancements in technology), our Purpose doesn’t alter. Providing a Certain Future for our clients, our team, our shareholders and all other stakeholders, is a much higher goal than simply maximising shareholder value.

OUR BEHAVIOURS

Inspire
Let’s inspire our customers by performing inspirational acts for them. Let’s also be inspired by them; look for the wonderful things that they’ve achieved. Remember that they are the reason that we are in business. If ever in doubt, ask yourself – “is this the right thing to do for our customer?”

Have Pride
Be proud of being part of the MTG Team. This is our business; it generates all of our livelihoods. Take the time to understand the various parts of the Company and what your fellow team members do. Advocate for the Company and remember to tell empowering stories.

Be Responsible
We are all part of the MTG Team, so treating each other respectfully and with care and concern will make MTG a great work-place. Good business will always be about relationships and building trust.

Be Safe
Take all reasonable precautions while at work, at home and to and from; to ensure your own safety, and the safety of your colleagues, friends and the public. If there is a single lesson to take from Covid-19, it’s not to take anyone, (or anything), for granted.

DECISION MAKING

When we ask our clients to make decisions that involve commitments to external parties, for example, signing personal statements, paying premiums, making claims; it’s imperative to follow the FMA guidelines around advice.

Only provide advice in areas of your own expertise and qualification
Seek advice if uncertain
Be open, honest and transparent with all clients and all stakeholders
Hold ourselves accountable for assessing best practice and providing our
Demonstrate care, diligence and skill

MAKING THE RIGHT CALL

Often, we need to make choices on matters that rely on exercising good judgement, for example, choosing which provider to place a particular client with, the level of cover required, what cover the client may miss out on due to premium restrictions.

As we make these daily decisions, it’s appropriate to ask ourselves:

Is this legal?
Is it the right thing to do?
Is it consistent with this Code, and MTG’s values?
Does it make me feel uneasy?
How would I feel if my peers or other MTG people are aware of what I’m Would I feel comfortable reading about it if it was published on-line? Could it harm me, my colleagues or customers or others, directly or indirectly?
Would I be comfortable explaining what I’m doing to members of my family?
Could I be compromising my objectivity and/or my integrity?

PLAYING THE FAIR AND ACTING THE MTG WAY

Part of our role within Financial Services is around education for our clients. Insurance especially, has its own “language”, and we and insurance companies use terminology that is not common to the general public. We use words and phrases like “indemnity”, “accelerated”, “agreed value”, “buy-back”, “tpd”, own occupation”,

etc. which are typically meaningless to our clients. Playing fair involves us with making sure that our clients understand these terminologies, and we remind them on the occasions that we do reviews.

The MTG way encompasses education and a method of presenting to and meeting with our clients. While we may have our own agenda for a particular meeting, we offer our client the opportunity to provide his/her agenda. The client comes first. Be sure to ask them what issues they might have, and wish to talk about.

If they don’t include what we wanted to raise, then we simply ask if we can add it to their agenda. When we ask permission to do things, we differentiate ourselves and develop a trusting relationship.

When we meet with clients for the first time, there will naturally be a focus on the present. We review their existing covers, their situation and their needs; and we make recommendations accordingly. But strategically, we need to be thinking long term. What will their situation be in twenty years’ time? Have we built a strategy that will allow our clients to be rid of unnecessary insurance costs, because now they have assets and have de-risked their situation? If we can help our clients in the short term and the long term, we are truly playing fair.

Our industry receives condemning publicity when “churning” is brought to the public’s attention. And rightly so. There will always be exemplary arguments and reasoning why an existing insurance portfolio is

inadequate, out of date or second best. However, the MTG way is not to make a practice or habit of changing an existing portfolio, but rather to consider how it might be tailored. Changing a client’s policies to another company, is not in itself churning, but doing so with little or no regard for the client’s best interests, certainly is.

All our insurance companies here in New Zealand support us in many ways, and they all provide excellent products that pay out many millions of dollars of claims each year. One of the best ways that we can demonstrate our support back to them is to avoid any semblance of churning their business.

Competition is a matter of fact. There will be many occasions when we meet competition and we lose out. There will hopefully be just as many times when we face competition and we win. Learn to live with and embrace competition, so that it brings out the best of you.

  
      There are some common-sense rules around dealing with competition,

      and if we abide by them, we will be putting the client’s best interests first.

      These rules demonstrate the MTG way.
    
      Be straight-up and accurate in describing any aspects of the insurance products and services you are dealing with.
Give clients all the information needed to make a buying decision. What we don’t say is just as important as what we do say.
Don’t hide important information in the small print, or “forget” the disclosure document!
Don’t exaggerate or make false claims about the products we deal with or the services we offer.

      Don’t make things up.
Don’t make promises we are unable to keep.
Ensure that comparisons with competitors’ products are accurate, fair and complete.
Be careful of the language we use when talking about competitors, their products and their services. Avoid being emotive or overly negative.
Where appropriate, promote all our providers’ products. They all have value.

      What we add as our own “extras”
      Our knowledge
Our expertise
Our service
Our commitment
Our trust
Our claims experience and management

BRIBES, KICKBACKS, GIFTS, HOSPITALITY

While chocolates and wine are usually acceptable and a great way to say thank you to underwriters, clients, claims managers and others who have given great service or help, don’t be extreme.

Bribery and kickbacks imply offering money or other valued benefit in order to influence a result. MTG does not permit bribery, corruption or kickbacks of any form. They are considered unethical and are strictly forbidden.

Giving and receiving gifts, like chocolates or a bottle of wine, can be normal business practice. However, this can also create a grey area where it could be seen as influencing a decision.

At MTG, we are all expected to abide by the MTG Gift Policy. We don’t accept gifts or personal benefits where this could, (or could be seen to), compromise or influence a decision that you make with a client or provider.

Similarly, we don’t give gifts or personal benefits if it might be considered that this could influence or compromise a decision by a client, supplier or other stakeholder.

CONFIDENTIALITY

Confidentiality of information relating to our clients and our business is extremely important. We commit to protecting the confidentiality of all non-public information concerning MTG. Confidential information must not be divulged except where authorised by the Directors or Senior Management of the business or as required by any law or regulation.

Confidential information includes non-public information (news or information that has not been made public) about the business, and our past, present and potential clients and product holders.

CONTROLS

Board signs off on Board Charter and Principles
How implemented: Board to review and agree Charter and Principles at first board meeting for financial year.
Frequency: Annually

Staff/adviser contractor written acknowledgement of receipt and understanding of Code.
How implemented: Each member of Staff and all contract advisers will be provided with a copy of the MTG Code of Conduct and must affirm in writing (which may be by electronic means) that they have received, read, and understood the Code of Conduct.
Frequency: Annually. Attestation fulfilled via email or LMS (TeamsPlus)

REFERENCES

Employment New Zealand
https://www.employment.govt.nz

Code of Professional Conduct for Financial Advice Services
Part 1: Ethical Behaviour, Conduct and Clients Care
Part 2: competence, knowledge and skill.
(All code standards under Part 1 and 2 apply)

Financial Markets Conduct Act
431M: Duty to comply with code of conduct

FMCA 2013
431Z: Application of conduct obligations

Adviser Attestation

Complaints Policy

🛑 CPD Point Available For This Section 🛑

POLICY BRIEF AND PURPOSE

.Policy Intention:

Maurice Trapp Group’s Complaints Policy aims to address the issue of client dissatisfaction, and provide a framework with which Maurice Trapp Group team members can connect with clients and respond to any issues or concerns that have arisen, creating resolutions that clients are satisfied with and consequently stronger client relationships.

Client complaints can help us identify areas in the business where repetitive behaviour within our team or with our processes and procedures is having negative consequence thereby opening up opportunities for us to make necessary changes to that behaviour, provide further training, or update our product delivery or procedures.

Who this policy applies to:

This complaints policy applies to all representatives of Maurice Trapp Group Ltd and associated Authorised Representatives. This includes employed staff and contractors in all areas of the business.

Why do we have a complaints policy?

Complaints are feedback on our process or conduct and creates the opportunity to improve, as well as strengthen the connection we have with the client as we work through to a resolution that is satisfactory to them. Maurice Trapp Group’s vision statement is for high quality client outcomes and robust support and advice. Client complaints can identify areas where Maurice Trapp Group Limited can improve and are an important facet of the business.

WHAT IS A CLIENT COMPLAINT

A complaint is an expression of dissatisfaction communicated by:

A customer who has received financial advice from us;
About a product, advice or service that they obtained through us; and
There is a request to remedy the situation

Complaints can come in many forms – particularly:

advice processes
a team member
administration processes and procedures
products and provider services
client and policy servicing
actions taken (or not taken) by our staff
claims and underwriting outcomes
communication

These can occur as either a verbal, (in person or by phone) or written format (letter, email, or through our website). No matter what format a complaint is received, it is to be treated with the same level of care. All team members have a critical role to play in providing positive outcomes for our clients. They are to be actioned in a timely manner with thorough investigation and due respect for the complainant.

Complaints can come from:

Current and former clients
Parties associated with client policies
Prospective clients contacted by telemarketers contracted to Maurice Trapp Group Ltd

COMPLAINTS POLICY STATEMENT

Maurice Trapp Group Limited recognises good customer care is fundamental to the success of our business. We aim to provide clients, partners and suppliers (our stakeholders) with excellent customer service. We will listen to the needs of our stakeholders and respond to complaints seriously, and with sensitivity, allowing redress where appropriate.

All complaints will be entered into our Complaints Registers (for Home Loans the register is in Trail) so that we can monitor emerging trends and issues. All Maurice Trapp Group advisers and staff are to keep thorough written records in the relevant Client File of all information relating to a complaint. These are to be documented chronologically.

Maurice Trapp Group’s Complaint Process

Complaints may be received at any level of the business and the MTG Team have a critical role to play in the proper functioning of our complaints handling procedure. Complaints received in writing are to be referred to either the Business Risk Manager (BRM) or National Relationship Manager as soon as practicable.

The complaint should be acknowledged within twenty-four (24) hours and recorded in the Complaints Register. In the event of receiving a verbal complaint, where the complaint is easily remedied, attempts should be made to reach agreement as to the steps that will be taken to remedy the complaint. All information is to be recorded on our Complaint Registration Summary Form (for home loans the register is in Trail CRM) and then provided to the BRM and/or NRM without delay.

The BRM and NRM both have critical roles to play in the proper functioning of the Complaints Handling Procedure as all complaints that cannot be resolved by advisors and/or administration team, will be escalated to investigate, monitor, resolve and close.

The BRM will report on open complaints, DRS status and complaint trends to the Senior Management Team bi-monthly.

STEP 1: ACKNOWLEDGE

Acknowledge receipt of the complaint within 24 hours of receipt and inform your client of next steps ensuring realistic timeframes are communicated to them. Let them know who you are and provide them with relevant information on how to contact you (phone / email).

If you receive a verbal complaint, ascertain whether it can be resolved immediately.

Ensure you clearly understand the client’s expected resolution, and if it is not clear, request further information. For matters that are not straightforward, the BRM will send the following for the client to complete and return to us.

Explain to them that we have a Complaints Handling Process, that we belong to a Disputes Resolution Scheme and how the process works (see 1 to 5 above).

Once the above document is received or once we have all the information we need, the following Acknowledgement Letter should be sent to the client. The text of this letter can also be sent by email.

If the complaint is about you, refer it to your direct manager.

STEP 2: INVESTIGATE / RESOLVE

We aim to resolve the complaint in a timely fashion (between 1 and 5 business days depending on complexities). We should remain open-minded and consider as many options as possible to reach a resolution. Record all correspondence, file notes, investigations, recommendations, decisions, reasons and actions taken.

Once we have completed our investigation and have come to a resolution that we believe the client will find satisfactory, provide an explanation to the client on how this issue occurred and what has been done to rectify the situation. Include updates on review to policies and procedures, training. Our explanation must be clear and must avoid industry jargon. Explain what will happen next.

If the client is not satisfied with our initial explanation investigate further, involve Management (if we haven’t already done so) and together, formulate an alternative resolution and complete the following template and send to the client.

STEP 3: ESCALATION

If the client still does not accept our explanation and resolution, refer them to our dispute resolution scheme – Financial Services Complaints Limited and the timeframe within which this needs to be done (2 months from the date of this Escalation interaction with the client).

This will be provided in letter format to the client.

FSCL will gather relevant information from both parties and investigate accordingly. On conclusion of their investigation they will recommend a settlement. If the client does not accept the decision FSCL makes, then FSCL will impose a final decision which is binding if accepted. If this too is not accepted by the client, the next step is for the client to resolve through a disputes tribunal of the Courts.

KEEP RECORDS

Once FSCL has completed their investigation and a satisfactory resolution has been reached, the file can be closed. We must ensure ALL information that relates to this complaint is recorded chronologically for future reference.

It is imperative that client confidentiality obligations be fulfilled, we will need the complainants’ written permission before disclosing information to a party outside of Maurice Trapp Group Limited or Authorised Representatives.

It is recommended to exercise caution and refrain from accepting liability if you are unsure about the circumstances.

ESCALATION

The Code of Rights outlines the rights of people using a health or disability service in New Zealand. The Code calls these people “consumers”. The Code also sets out the duties of people and organisations providing health and disability services. These people are called “Providers”.

The Code of Rights applies to both public and private facilities and to both paid and unpaid services. It stipulates that consumers be given:

The right to be treated with respect
The right to freedom from discrimination, coercion, harassment and exploitation
The right to dignity and independence
The right to services of an appropriate standard
The right to effective communication
The right to be fully informed
The right to make an informed choice and give informed consent
The right to support
Rights in respect to research
The right to

The client must use Maurice Trapp Group Limited’s internal complaints process first as many problems are of a minor nature that can be easily solved. Maurice Trapp Group Limited have a maximum timeline of 3 months to fully resolve a client complaint. Timely action in regards to complaints further demonstrates to the client that their business is important to us.

ADVISER RESPONSIBILITY

Confidential information includes non-public information (news or information that has not been made public) about the business, and our past, present and potential clients and product holders.

BUSINESS RISK MANAGER RESPONSIBILITY

The role of the Business Risk Manager is to ensure that we (as a wider Company) are conducting our business in full compliance with all national laws and regulations that pertain to our industry as well as professional standards, accepted business practices and internal standards. There is both an ethical

component and a pragmatic component to compliance – a role that is crucial in helping us manage risk, maintain a positive reputation and avoid litigation.

The complaint will be acknowledged to the client within 24 hours of receipt and recorded in the Complaints Register.

Within 5 working days the client must be advised of the decision being made or an interim response advising that investigations are underway.

The Complaints Register must be updated at each stage therefore it is integral that clear lines of communications are in effect during this process in order that communications are captured correctly.

In the letter to the client advising of the decision being made, reference must also be made to the complainant’s right to have the matter reviewed by our Disputes Resolution scheme. The Business Risk Manager will consider whether a notification is required to the FMA and advise the COO & MD accordingly. If not resolved the Business Risk Manager will adopt the escalation process.

FINANCIAL DISPUTES RESOLUTION SERVICE

Maurice Trapp Group and Authorised Representatives have appointed Financial Services Complaints Limited as our independent disputes resolution scheme.

Post: Financial Services Complaints Ltd P O Box 5967 Wellington 6011
Freephone: 0800 347 257
Phone: 04 472 3725
Email: complaints@fscl.org.nz

Any complaint unresolved through our internal complaint handling process will be referred to FSCL.

CONTROLS

  
      Control
      Control management
      Responsibility
      Check frequency
    

  
      Adviser and Administration training
      All staff are provided with training on how to manage complaints. This is at time of induction and an annual refresher.
      L&D Co-ordinator
      Annually
    

      Complaint Register
      Receipt of complaint to be recorded in Complaints Registers by BRM & NRM. Both manage the registers at each step in the process until the complaint is resolved.
      Business Risk Manager & Nat Relationship Manager
      Ongoing
    

      Complaint Analysis
      The Complaint Registers should be analysed to identify any potential trends or systemic issues and to identify control weaknesses that require remediation.
      Business Risk Manager
      Bi-Monthly
    

      Complaint Reporting
      Complaint Registers are reviewed bi-monthly and a report provided to the RCC.
      Business Risk Manager
      Bi-Monthly
    

Record Keeping Policy

🛑 CPD Point Available For This Section 🛑

Purpose

This Record Keeping Policy outlines the standards and procedures for maintaining accurate, reliable, and secure records of all business activities, particularly those related to financial advice provided to clients. The policy ensures compliance with applicable laws and regulations, including the Financial Markets Conduct Act 2013 (FMC Act), the Financial Services Legislation Amendment Act 2019 (FSLAA), and the Financial Markets Authority (FMA) guidance for financial advice providers in New Zealand.

Scope

This policy applies to all employees, contractors, and representatives of MTG/Mortgage Lab who are involved in the provision of financial advice, support, or related services. It covers all client records, financial documentation, and other business-related information generated or received during the course of business.

Legal and Regulatory Framework

The policy is governed by the following legal and regulatory frameworks:

Financial Markets Conduct Act 2013 (FMC Act)
Financial Services Legislation Amendment Act 2019 (FSLAA)
Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act)
Privacy Act 2020
Financial Advice Code of Professional Conduct
Financial Markets Authority (FMA) Guidelines

Principles of Record Keeping

MTG/Mortgage Lab will adhere to the following key principles in maintaining records:

Accuracy: Records will be accurate, complete, and up-to-date.
Retention: Records will be retained for a period of at least 7 years from the later of:

the date the record is made; or
the date the financial advice to which the record relates is given; or
the date any later record is made that refers to or relies upon information in the record; or
the date of the conclusion of the life of the financial advice product that the financial advice relates

Security: Records will be protected from unauthorized access, loss, damage, or alteration.
Accessibility: Records will be accessible to authorized personnel, clients (as appropriate), and regulators upon request.
Confidentiality: Records will be treated with strict confidentiality, in line with privacy laws and best practices.

Types of Records to be Kept

The following records must be maintained:

Client Records: Includes personal details, financial circumstances, needs analysis, risk tolerance, and any other information used to provide advice.
Advice Documents: Includes all advice provided, Statements of Advice (SOA), fact finds, product recommendations, and any documentation related to financial advice.
Correspondence: Includes emails, meeting notes, phone call logs, and any communication between the financial adviser and the client.
Transactional Records: Includes all financial transactions related to the advice provided, fees, commissions, and any product-specific records.
Compliance and Risk Management Records: Includes AML/CFT documentation, conflict of interest disclosures, complaints, and other compliance-related documents.

Storage of Records

Digital Records: For L&H and KiwiSaver all digital records will be stored in Mo, a secure cloud-based system or on encrypted servers with regular backups. For mortgages we keep complete records within the Get Trail software.
Physical Records: Physical records will be stored in locked, secure facilities. Only authorized personnel will have access to these records.
Backup and Recovery: A regular backup and disaster recovery system will be maintained for all digital records.

Access and Confidentiality

Access: Only authorized employees or representatives of MTG/Mortgage Lab may access client and business records. Clients have the right to request access to their personal records in accordance with the Privacy Act 2020.
Confidentiality: Personal and financial information of clients will be handled confidentially, and measures will be taken to prevent unauthorized disclosure.

Record Keeping Procedures

A list of key Mo CRM Record Keeping processes can be found on the Intranet

Destruction of Records

Records that are no longer required to be kept under this policy will be securely destroyed. For digital records, this means using methods such as encryption and deletion. For physical records, shredding or incineration will be used to ensure complete destruction.

Responsibilities

Head Of Operations: Ensuring that all staff are aware of and adhere to the Record Keeping Policy and relevant legislation.
Staff and Advisers: Ensuring all client records, advice documentation, and other business-related documents are accurately maintained and securely stored.
QA Assessor: Conducting regular audits to ensure compliance with the Record Keeping Policy and reporting any breaches or issues.

Review and Audit

This policy will be reviewed at least annually, or more frequently if required by changes in legislation or business practices. Regular audits will be conducted to ensure compliance with the policy.

Breach of Policy

Any breach of this Record Keeping Policy may result in disciplinary action and could be subject to regulatory penalties. Serious breaches, such as the unauthorised disclosure of client information, may result in termination of employment or contract, and be reported to the relevant authorities.

CONTROLS

Review of the record keeping procedure
How implemented: Record keeping procedure to be reviewed and confirmed as satisfactory, including destroying records no longer required.
Responsibility & Frequency: Head of Operations – Annually

Check of records and security
How implemented: Periodic review to confirm that records are safe, secure, and complete.
Responsibility & Frequency: QA Assessor – Ongoing

Check of Cyber Security

Refer IT Systems and Security Policy

Conflicts of Interests & Gifts Policy

🛑 CPD Point Available For This Section 🛑

The purpose of this policy is to ensure that any actual or potential conflicts of interest are identified, managed and disclosed.

The desired outcome is to prevent client harm, balance client’s interests with business interests and provide staff with clarity on how to act if conflicts of interest arise.

This policy applies to all directors, employees, and contractors.

WHAT IS A CONFLICT OF INTEREST?

A conflict of interest may arise, in any area of a FAP’s business, where a FAP:

Is likely to make a financial gain (or avoid a loss) to the detriment of its clients.
Receives money, goods, or services from a third party in relation to services provided to clients other than standard fees or commissions.
Has a financial or other incentive to favour the interests of one client over another.

INTRODUCTION

The meaning of conflict of interest as stated in schedule 21A of the Financial Markets Conduct Regulations 2014 which defines a conflict of interest as where “a reasonable client would expect [it] to, or to be likely to, materially influence the advice given by the adviser

This clause defines what is meant by a conflict of interest and a commission or other incentive in relation to advice given by a person (A) to a client of a financial advice provider (P).
A conflict of interest, in relation to advice, means any interest of A, P, or another person connected with the giving of the advice that a reasonable client would expect to, or to be likely to, materially influence the advice given by A.
A commission or other incentive is a commission, benefit, or other incentive (whether monetary or non-monetary and whether direct or indirect)—
that is given to A, P, or another person connected with the giving of the advice as a consequence of A giving the advice or the client acting on the advice (for example, by acquiring a financial advice product); and
that a reasonable client would expect to, or to be likely to, materially influence the advice given by A.

A conflict of interest (COI) is a situation in which a person is able to derive personal benefit from actions or decisions made in their official capacity. A conflict of interest also arises in the workplace when we have competing interests or loyalties, which either are or potentially can be, at odds with each other.

Conflicts of Interest can be separated into financial conflicts and non-financial conflicts. Here are several examples for risk and home loans advisers.

Commission-based remuneration: we earn commissions based on the risk products or loans we facilitate. This creates a potential conflict of interest, if advisers recommend risk products or loans that offer higher commissions rather than those that are the best fit for the client. Of particular concern is instances where financial products are being replaced (refer our Replacement Business Policy and Practice Standards for more information)
Incentives from insurance providers or lenders: in circumstances where we may receive incentives or bonuses from insurers or lenders for directing business their way thereby influencing an adviser to favour suppliers, even if those suppliers do not necessarily provide the most favourable terms for the borrower.
Volume-Based Bonuses: we may receive bonuses based on the volume of risk products we issue or loans we originate. This may encourage advisers to prioritize quantity over quality, potentially leading to recommendations that are not in the best interest of the client.
Affiliated relationships: we may have affiliations or partnerships with specific insurers or lenders. In such cases, there may be a conflict of interest if we promote their products without considering other options that might be more suitable for the borrower.
Secondary businesses: if we are involved in other financial services or have affiliations with companies that provide related services (such as home appraisal services), there could be a conflict of interest if the adviser directs clients to those services without considering alternatives.
Conflicted Roles: for home lending we are required to ensure that advisers are not also acting as real estate agents, accountants or solicitors.
Referral arrangements: advisers may have referral agreements with other professionals, such as attorneys or accountants. Conflicts of interest can arise if these referrals are based on financial arrangements rather than the client’s best interests.

POLICY STATEMENT

Where there is a conflict of interest, priority must be given to the client’s interests by taking all reasonable steps to ensure that the advice/product/service is not materially influenced by any other interests.

We are required to identify and manage conflicts of interest and be transparent with clients when or if conflicts could arise. Wherever possible, conflicts of interest should be avoided or managed.

KEY PROCESSES

Conflicts of interest are likely to arise from time to time, so we have ongoing processes for managing them.

  
      Identify
    
      identify any conflicts of interest starting with the initial engagement with every client, service provider or other company
seek information from the client and/or from knowledge of your business and its relationships.
be alert to the possibility that new conflicts of interest may be created or identified during ongoing interactions with clients and companies.
Read and understand the Code of Conduct and Ethics policy – these outline our standards

      Manage
    
      sometimes conflicts of interest will be unavoidable, if so, manage these so that the client’s interests are given priority.
We will provide training to help our team to identify ethical dilemmas and make correct decisions.
We will help our team to make decisions impartially and manage the risk of bias.

      Avoid
    
      organise business to avoid the potential for significant perceived or actual conflicts of interest.
document action taken to avoid conflicts of interest.
if the conflict cannot be adequately managed, be prepared to decline the client, position, situation etc. (be prepared to walk away from a deal).
If unsure, seek advice from senior team members.

      Communicate
    
      Communicate any actual or potential conflicts that arise to the client and explain or discuss how they will be managed or resolved.
This includes communicating about and explaining any matters that might be perceived as conflicts of interest.
Be sure that your Recommendations in your Report / SOA provide clarity around any potential conflicts.

      Record and Review
    
      Record conflicts of interest on the COI Register.
Review and update periodically as interests change.

CONTROLS

COI Register
How implemented: We note any COI in the COI register
Responsibility: Head of Ins & KiwiSaver/Head of Mortgages

COI Training
How implemented: Induction and Ongoing
Responsibility: Head of Ins & KiwiSaver/Head of Mortgages

Gift Register
How implemented: Review the register to ensure all gifts are recorded. This may include hospitality or discounts offered. The Gift Register is here.
Responsibility & Frequency: Responsibility: Head of Insurance & KiwiSaver/Head of Mortgages

REFERENCES:

Financial Markets Conduct Act 2013
431K Duty to give priority to client’s interests

Code of Professional Conduct for Financial Advice Services
Part 1, Ethical Behaviour, Conduct and Client Care
Code Standard 2 – Act with Integrity

Vulnerable Customers Policy

🛑 CPD Point Available For This Section 🛑

INTRODUCTION

MTG has a duty of care to ensure that we have a clear, transparent, and consistent process for addressing the risks associated with selling products to vulnerable people.

A vulnerable person is defined as “someone who, due to their personal circumstances, is especially susceptible to harm, particularly when an organisation or business is not acting with appropriate levels of care”.

Examples of vulnerable clients are:

Persons with mental health problems g depression;
Persons with difficult financial circumstances g. recent unemployment;
Persons with physical health issues g. hearing or sight impairment;
Persons experiencing age-related impairment, cognitive impairment, elder abuse;
Persons with communication issues g. English is not their first language; and
Persons in a stressful or unfamiliar situation g. recent death of a spouse or loved one, recent immigrant

In certain circumstances, anyone could be classified as a vulnerable customer. Having alternate approaches, prompts and techniques will help all types of customers understand your advice

Whilst vulnerable clients are typically identified as specific groups of people, for example those with health issues or low literacy skills or without any significant financial buffer against unexpected events, anyone can potentially become vulnerable at some point in their lives.

As such a robust approach to vulnerability is more than a process designed to ‘treat clients fairly’. Vulnerable clients are those that need some additional assistance at some point to avoid harm (financial or psychological), either throughout the lifecycle of a product/service or in response to certain events that may occur.

POLICY STATEMENT

When we approach a client, we will use the 3C’s approach to help identify all types of vulnerability. By understanding these different groups is an effective method of identifying the various forms of vulnerability before establishing “best” practices in terms of how we should be approaching them.

We ensure that vulnerable clients have access to practical, jargon-free information and help in respect of our products.

Channels and Access

e.g. hearing, sight, language barriers and physical disability

Comprehension

e.g. Mental capacity, low financial understanding and issues relating to old age, such as dementia

Circumstance

e.g. bereavement, family breakdown or illness

KEY PROCESSESS

We are trained to recognise vulnerable clients and then implement an advice solution that is appropriate for these clients. Once we have identified a vulnerable client, we will note it in our CRM so we are all aware of it and can take the appropriate steps when working with the client. This will normally involve a modification to the advice process and can include one or more of the following actions: