Putting on our ‘Sunday best’ – closing the conduct gap As already mentioned, earlier this year the FMA and Reserve Bank released a joint report6 called Life Insurer Conduct and Culture. We believe that conduct within financial institutions is a contributing factor to customer outcomes, and can result in a gain or loss of trust and confidence in the industry.
For macro-prudential analysis, enhanced disclosure will allow a better understanding and measurement of where systemic risk might be via the construction of more accurate indicators of aggregate leverage, correlation and concentration of exposures to specific asset classes and of a firm’s level of interconnectedness, for example.