Financial Integrity System Assessment

Provide feedback on the FISA methodology

TINZ is encouraging feedback on the FISA methodology before the end of May 2019.

General comments can be directed to fisa@tinz.nz.org. Please consider doing a detailed review by downloading a copy of the FISA Assessment Methodology and emailing tracked changes back to fisa@tinz.nz.org.

The 2019 New Zealand Finance Integrity System Assessment (FISA) is the first ever assessment of the integrity framework of any country's financial system. It covers government and industry agencies with oversight and regulatory roles in the finance sector, and a wide range of financial organisations. This evidential assessment, including an online self-assessment questionnaire, covers the financial system.

FISA Objective

FISA is designed to gain an objective and independent view of the integrity of a country’s financial system. The FISA will provide customers, citizens, communities, civil society organisations, government and businesses detailed information about the way that the financial system conducts itself.  It identifies and seeks to prevent poor conduct through reinforcing core ethical values and culture which contribute to strengthening the integrity systems which prevent corruption.

FISA Audience

It is addressed to all deposit-taking organisations, insurance companies and their regulators.  Financial organisations know that public and international trust is vital for New Zealand’s future and that corrupt behaviour, corruption scandals, collusion, bribery and lack of transparency, damage that trust.

FISA is not a review. It is a pro-active tool aimed at self-assessment and at widening the discussion about the priorities for New Zealand to strengthen its integrity systems, the best way of protecting against corruption, whether from internal or external sources.

Armed with this knowledge, citizens and customers can both identify good conduct and push for improvement. At the same time, financial organisations can choose to set clear priorities to develop their activities aimed at preventing corruption while seeking the additional returns that come when they adopt a pro-active role to promote their integrity.

Why the time is now

The Reserve Bank of New Zealand (RBNZ) and Financial Market Authority (FMA) review into Banks, November 2018, found that “Overall, there are weaknesses in the governance and management of conduct risks, and significant gaps in the measurement and reporting of customer outcomes”.

They noted that there was “significant variation in the maturity of banks’ approaches to identifying, managing and remediating conduct risks and issues”, with some banks described as “reactive at best, and complacent at worst”. 

Their review into the Insurance sector was even more concerning, finding “extensive weaknesses in life insurers’ systems and controls ….. governance and management of conduct risks is weak and there is a lack of focus on good customer outcomes.” The report urged Insurers to act urgently as the industry is vulnerable to misconduct and escalation of issues, additionally noting there were instances of poor conduct and existing examples of potential misconduct (ie breaches of the law).

The aim of the FISA assessment is to:

  • Build trust and confidence, nationally and internationally, in New Zealand’s financial system
  • Examine the current state of the integrity systems of New Zealand’s financial system
  • Foster and support good conduct, and motivate the development of new initiatives and tools that support good conduct and prevent and combat corruption, and
  • Reinforce a culture of integrity in a way that realises its benefits

FISA Short Document 15 April 2019 FISA Short Document 15 April 2019 TINZ FISA Assessment Methodology for Final Draft Consultation 15 April 2019

FISA Related Links

Links to other reports