Financial Services Council

1. Official Name: Financial Services Council of New Zealand Incorporated (commonly FSC).

2. Legal Status: Incorporated Society (non-profit industry association) registered under the Incorporated Societies Act 1908【14†】.

3. Incorporation Number: 831771 (unique Society registration number).

4. NZBN: 9429043008391 (New Zealand Business Number, identifying the society in government registers).

5. Tax Registration (IRD): Not a registered charity; operates as a mutual industry body, with taxable income on non-member-derived revenue.

6. Year Established: 2012 – Launched in March 2012 as the successor to the Investment Savings & Insurance Association (ISI). The FSC was officially unveiled on 13 March 2012, marking a strategic shift from the ISI’s self-regulatory role to a stronger focus on information sharing and lobbying.

7. Historical Evolution: Formed by the ISI’s members’ vote to create a “highly influential” pan-industry council – an “800‑pound gorilla” in advocacy, as described by its first CEO. It absorbed or merged with several related industry bodies over the last decade: notably Workplace Savings NZ (the workplace superannuation/KiwiSaver industry group) in 2019 and the Health Funds Association of NZ (health insurers’ association) in late 2020, folding those sectors under the FSC banner.

8. Former Names: Formerly known as the Investment Savings & Insurance Association of NZ (ISI) prior to 2012. The rebranding to FSC reflected an expanded remit across the broader financial services sector. (The ISI itself was an earlier incarnation representing life insurers and fund managers.)

9. Headquarters & Offices: Based in Auckland, New Zealand. As of 2023, the registered office is Level 17, Commercial Bay Tower, 11–19 Customs Street West, Auckland 1010. (Previously located at Level 33, ANZ Centre on Albert Street; the office moved to Commercial Bay in the 2020s.) The Council does not maintain regional branches; it operates primarily from Auckland with national scope.

10. Contact Details: Phone – +64 (09) 802 1532; Email – fsc@fsc.org.nz. Website – www.fsc.org.nz (official site for publications, media releases, and member resources). Social media presence includes LinkedIn and Twitter under the FSC identity (used for industry updates and lobbying messages).

11. Governance Structure: Governed by a Board of Directors drawn from senior executives of member organisations, plus an Independent Chairperson. The independent chair (non-executive) is intended to provide leadership at arm’s length from any single member company’s influence. Board sub-committees focus on areas like policy, standards, and audit. The FSC’s Rules/Constitution (latest revision effective 7 Nov 2019) set out its governance and membership structure.

12. Current Leadership: Chairperson – Vacant/Transition: Longtime independent chair Rob Flannagan (former Tower Insurance CEO) served 2015–2023 and stepped down in Dec 2023 after nine years at the helm. (Flannagan had been appointed to replace Dame Jenny Shipley in 2015 and extended his term to assist with CEO transition in 2024.) The FSC Board is in the process of appointing a new chair as of early 2025. Chief Executive Officer (CEO) – Kirk Hope, appointed effective 18 September 2024. Kirk Hope is the former chief executive of BusinessNZ (NZ’s peak business lobby) and the Bankers’ Association, bringing extensive lobbying and policy experience. He succeeded Richard Klipin, who led the FSC from 2017 until May 2024. Klipin, an Australian-born industry leader and ex-Association of Financial Advisers CEO, resigned after seven years to head Australia’s NIBA (insurance brokers’ association). Earlier, the founding CEO (2012–2016) was Peter Neilson, a former NZ Labour Party cabinet minister, and the inaugural Chair (2012–2015) was Dame Jenny Shipley, a former Prime Minister of New Zealand – both high-profile appointments signalling the FSC’s intent to wield political influence from the start.

13. Personnel and Staffing: Operates with a relatively small secretariat team. Aside from the CEO, key staff include heads of policy/regulatory affairs, communications, and events. For example, the Head of Regulatory Affairs is Carissa Perano. The lean staff (approximately 8–12 employees) coordinates member committees and advocacy efforts nationwide.

14. Membership Size: Approximately 110 members. The FSC has grown significantly – from 38 members at launch in 2012 to 30 members (15 full and 15 associate) by 2017, then expanding to 92 members by 2021 after mergers. Current membership is likely around the 95–100 mark, representing the bulk of New Zealand’s financial services industry.

15. Membership Composition: Full Members (voting) are primarily major financial institutions: life insurance companies, health insurers, general insurers with life/health lines, banks’ wealth and KiwiSaver divisions, fund managers, KiwiSaver and superannuation scheme providers. This includes household names – e.g. AIA, AIG, ANZ Investments, ASB/Colonial, Westpac/BT, Fisher Funds, Partners Life, Fidelity Life etc. Associate Members (non-voting) are firms that provide services to the sector: the Big Four accounting firms, law firms (e.g. Bell Gully, Russell McVeagh), consultancies, reinsurers, fintech and software providers, and industry service companies. The associate tier allows allied businesses to participate in FSC forums. (As of 2017, there were equal numbers of full vs associate members; by 2021, post-mergers, the majority are core industry firms).

16. Key Members & Market Coverage: The FSC’s full members collectively manage tens of billions in assets and serve millions of New Zealanders. In 2021, FSC members managed over NZ$88 billion in funds and paid out NZ$2.8B in insurance claims annually. They include all major life/health insurers and KiwiSaver providers, giving FSC an extremely broad representation – effectively 95%+ of NZ’s life insurance market and most KiwiSaver assets. The inclusion of Workplace Savings NZ members also brought large employer-sponsored superannuation schemes under the umbrella. This broad base makes FSC the pre-eminent voice for the financial sector, often eclipsing smaller or niche bodies. (Notably, mainstream banks’ core banking operations are represented separately by the Bankers’ Association, but those same banks’ fund management arms sit in FSC, creating overlapping influence channels.)

17. Areas of Activity: The Council’s mandate spans life insurance, health insurance, disability and income protection insurance, KiwiSaver and retirement savings, investment and funds management, financial advice, and related professional services. It engages in policy development and lobbying on all these fronts, aiming to shape legislation and regulation in favour of industry interests. The FSC also provides a platform for industry collaboration, runs conferences and awards (the annual FSC Conference is a major industry event drawing hundreds of attendees), and produces research reports on topics like KiwiSaver, insurance uptake, and New Zealanders’ financial capability.

18. Stated Purpose/Mission: “To be the voice of New Zealand’s financial services industry” and to “grow the financial confidence and wellbeing of New Zealanders”. The FSC claims a vision of improving consumer financial outcomes, alongside ensuring a “strong, sustainable financial services sector” and “increasing professionalism and trust” in the industry. Its formal aims include being recognised by regulators and Government as the representative industry body, promoting best practices and integrity via codes and standards, and advancing members’ interests through advocacy. These mission statements blend public-interest rhetoric (wellbeing, trust) with its core role as an industry lobby to government.

19. Activities and Services: Lobbying & Advocacy – The FSC’s primary function is advocacy on policy and regulatory matters. It makes submissions on legislation and government consultations (often dozens per year) on behalf of members. It holds private meetings with Ministers, MPs, and officials to influence policy (though not publicly disclosed, as NZ has no lobbyist registry). Policy Development – Internally, FSC convenes member committees to formulate industry positions on issues like insurance law, investment regulation, taxation, climate/ESG, etc., which feed into its lobbying stances. Research & Public Relations – It commissions surveys and publishes reports (e.g. Financial Resilience Index, KiwiSaver wealth projections) to bolster its advocacy with data and to shape public discourse in ways favourable to industry (for instance, highlighting New Zealanders’ under-insurance or lack of retirement savings, thereby supporting the need for private financial products). Events & Networking – The Council organizes conferences, awards (e.g. FSC Awards), and seminars that bring together industry leaders, regulators, and politicians, facilitating networking and influence-building in an informal setting. Self-Regulation – In 2019, the FSC introduced a Code of Conduct for its members, with a disciplinary committee to enforce standards, positioning the industry as capable of policing itself (a strategy to pre-empt or soften external regulation).

20. Sector Influence & Partnerships: Domestically, the FSC works closely with regulatory agencies and is often seen as a key stakeholder in financial policy. Government regulators like the Financial Markets Authority (FMA) and Reserve Bank (RBNZ) regularly consult the FSC on proposed rules. The Council often partners with other business groups on broad issues – for example, aligning with BusinessNZ on opposing certain taxes or with the Bankers’ Association on overlapping interests (like savings policy). Internationally, FSC is the New Zealand member of the Global Federation of Insurance Associations (GFIA), linking it into global lobbying on issues like insurance regulation, capital standards, and climate risk. It also engages with organisations in Australia (its CEO regularly liaises with the Australian FSC and similar bodies on trans-Tasman matters).

21. Financial Model: The FSC is funded principally by membership fees paid by its member companies. Larger institutions pay substantial annual dues (scaled by size), which collectively make up the bulk of its revenue. In the year to 30 June 2023, the FSC’s total operating income was NZ$2.78 million. It derives income from member subscriptions, event sponsorships and ticket sales (its conferences are revenue-generating), and the occasional research sponsorship. Financial statements show it had $907k cash on hand and $1.24m in term deposits at June 2023, reflecting prudent reserves. The Council tends to run a modest surplus most years (e.g. ~$165k surplus in 2023) which is retained in accumulated funds. It is not publicly taxpayer-funded (no government grants). Because it’s not a charity, it pays income tax on any net profit from non-members (the 2023 accounts list income tax expense of ~$81k). Financial transparency is provided through annual reports available to members and online.

22. Membership Fees & Benefits: Precise fee levels are not public, but large insurers and banks likely pay significant five-figure sums annually for FSC membership. In return, members gain a collective voice in policy lobbying, access to government relations opportunities, industry data, participation in committees, and brand association with FSC’s consumer initiatives. Associate members pay lower fees for limited benefits (networking, industry info). The FSC’s constitution allows it to expel or suspend members (e.g. for breaching Code of Conduct or non-payment of fees), though this is rare. In 2016, several major insurers temporarily resigned in protest (over a policy disagreement) and thus did not pay fees for that period – some later rejoined and paid arrears once issues were resolved.

23. Public Accountability & Transparency: Disclosure of lobbying activities is minimal. New Zealand has no mandatory lobbyist register, and the FSC does not voluntarily publish details of its meetings with officials or ministers. Its submissions to Parliament and ministries are public on those agencies’ websites, but any behind-closed-doors advocacy (phone calls, meetings, draft consultations influence) goes unreported. The Integrity Institute’s new “unofficial” Lobbying Register flagged this gap, listing FSC as a powerful influencer operating without formal public scrutiny. The FSC’s own governance disclosures are basic: it lists current board members and provides annual financials, but does not disclose its funding breakdown (who pays what) or minutes of its internal meetings. There is no public record of FSC’s communications with ministers, beyond what the Official Information Act might occasionally reveal via specific requests. In short, the extent of its political lobbying is opaque, a concern given its influence.

24. Relationships with Government: The FSC maintains close working relationships with key government agencies. It frequently appears in Parliamentary Select Committee hearings on financial bills (often invited to give oral evidence). The Ministry of Business, Innovation and Employment (MBIE) regards FSC as a representative voice – e.g. MBIE’s 2021 insurance contract law review cited FSC’s input as speaking for the sector. From time to time, FSC executives sit on government advisory groups (for instance, FSC’s CEO was on a panel advising the Retirement Commissioner’s review). These ties give FSC insider access. However, it holds no official regulatory role – it’s an outside lobby group, albeit one often treated as a de facto partner by policymakers due to its broad industry mandate.

25. Key Regulatory Issues: Major policy and regulatory issues involving the FSC in the last decade include: Financial Advisers Act reform (2015–19) – FSC pushed for simplifying adviser categories but stopping short of a complete ban on commissions; Insurance contract law update – advocated for balanced disclosure obligations; KiwiSaver settings – lobbied on default provider selections, contribution incentives, and taxation of KiwiSaver (FSC strongly opposed a 2022 proposal to apply full GST to fund manager fees, calling it an “overreach” that would hurt savers); Conduct regulation – post-Australia’s Royal Commission, NZ regulators scrutinised insurer conduct – FSC responded with its own Code of Conduct to stave off harsher measures. Climate and ESG – FSC set up a committee to engage on climate-related financial disclosures, reflecting member interest in shaping new requirements. Retirement income policy – the FSC often campaigns for policies that channel more savings into managed funds (e.g. auto-enrolment in KiwiSaver, or not diverting contributions to a public fund), aligning with members’ commercial interests under the guise of improving retirement preparedness.

26. Controversies: The FSC’s history is marked by episodes highlighting the tension between its professed consumer-focused mission and its actual role defending industry profits. In 2015–16, a schism occurred when five large life insurers (incl. AMP, AXA/Sovereign, AIA, Asteron, Partners Life) quit the FSC over a report that criticized high sales commissions in insurance – those companies felt the FSC-backed report was against their interests. The CEO (Peter Neilson) resigned amid the fallout. This incident exposed internal conflict of interest: the FSC had commissioned research in the public interest (highlighting conflicted remuneration practices), but parts of its membership revolted to protect their sales models. The FSC had to backtrack and rebuild unity (some insurers only rejoined after leadership change and assurances). Another controversy arose with the government’s proposed KiwiSaver fee GST in 2022 – critics noted the biggest beneficiaries of blocking the tax were FSC’s big fund manager members, raising questions about whether public messaging about “protecting savers’ balances” was cover for protecting industry fee revenue. The FSC vigorously lobbied against the tax and celebrated its withdrawal. These cases illustrate how the FSC’s advocacy often aligns with its members’ commercial interests even if dressed as consumer advocacy, which has drawn scrutiny from media and policy watchdogs.

27. Global and Overseas Links: While focused on New Zealand, the FSC does have international connections. It is a member of the Global Federation of Insurance Associations (GFIA), sitting alongside powerful groups like the American Council of Life Insurers and Insurance Europe. This connection allows FSC to coordinate on global insurance lobbying (for example, on international capital standards or sustainability issues). Some FSC member companies are subsidiaries of multinationals (e.g. AIA, Cigna, Fidelity Life’s Canadian shareholder), meaning the FSC indirectly represents overseas corporate interests in NZ policy debates. The FSC’s leadership also networks with overseas counterparts – for instance, Richard Klipin had ties with Australian financial associations, and new CEO Kirk Hope’s role in BusinessNZ saw him engaging with OECD and APEC business forums. Such links mean international lobbying perspectives (like opposition to certain global regulations) can filter into FSC’s stance.

28. Integrity and Ethics Framework: The FSC markets itself as an organisation committed to high ethical standards. Its Code of Conduct (in force since 2019) sets principles for member companies around good customer outcomes, transparency, and integrity. An independent disciplinary committee (chaired by a senior barrister) was established to enforce the code. However, this self-regulatory regime is voluntary and operates behind closed doors; outcomes of any disciplinary actions are not public. There is an inherent conflict of interest in an industry body policing its own members’ ethics – the FSC’s mandate to promote a good image of the industry might clash with exposing misconduct by members. Critics suggest the Code of Conduct serves as “integrity washing”, allowing the industry to claim it’s addressing issues while avoiding external regulation. Moreover, the close ties of FSC executives with political figures (e.g. Dame Jenny Shipley as founding chair, a former PM; Peter Neilson, a former minister, as CEO) exemplify the revolving door between government and lobbyists – raising transparency and impartiality concerns.

29. Summary of Standing: The Financial Services Council is New Zealand’s foremost financial industry lobby group, wielding significant behind-the-scenes influence over financial policy and legislation. It functions as a well-resourced advocate for banks, insurers, and fund managers, often able to shape political outcomes to align with its members’ interests – yet it operates without the kind of public transparency or accountability that might be expected given its impact. Its dual messaging – pledging consumer wellbeing while lobbying hard against reforms that might benefit consumers but hurt industry profits – makes it a controversial but undeniably powerful player in the policymaking landscape.

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Sources

[1] ISI reborn as Financial Services Council, Good Returns (14 Mar 2012) – Article on the launch of FSC as successor to ISI, detailing membership and leadership roles. https://www.goodreturns.co.nz/article/976499409/isi-reborn-as-financial-services-council.html

[2] Peter Neilson leaves as head of Financial Services Council, BusinessDesk via Scoop (15 Feb 2016) – News report on FSC CEO Peter Neilson’s resignation amid member exits over a controversial report, including member criticisms. https://m.scoop.co.nz/stories/BU1602/S00440/peter-neilson-leaves-as-head-of-financial-services-council.htm

[3] Resigned FSC members rejoin, Good Returns (31 Aug 2016) – Article describing how some insurers (AMP, Sovereign, Fidelity) rejoined FSC after earlier quitting, with quotes from FSC Chair Rob Flannagan and members on industry voice. https://www.goodreturns.co.nz/article/976504602/resigned-fsc-members-rejoin.html

[4] Bryce Edwards, The NZ Lobbying and Influence Register, Good Oil (9 Apr 2025) – Launch announcement of Integrity Institute’s unofficial lobbying register, discussing FSC’s inclusion and lack of official transparency in NZ lobbying. https://goodoil.news/the-nz-lobbying-and-influence-register/

[5] Bryce Edwards, NZ Lobbying Register – draft entries and intro, Democracy Project Substack (April 2025) – Details the purpose of the lobbying register and notes on how entries (like FSC) are evolving, calling out “hidden lobbying” and need for transparency. (Accessed via Good Oil reproduction) https://goodoil.news/the-nz-lobbying-and-influence-register/

[6] Financial Services Council – Submission to MBIE on Dispute Resolution Scheme Review (6 May 2021) – Official FSC submission document, includes description of FSC as “non-profit member organisation” with vision and member stats (92 members, $88bn funds). https://www.mbie.govt.nz/dmsdocument/16778-financial-services-council-review-of-the-approved-financial-disputes-resolution-schemes-discussion-paper-submission

[7] Financial Services Council – Who we are (2017, MBIE Consultation Submission) – Excerpt stating FSC had “15 member companies and 15 associate members at 31 March 2017” and listing types of companies represented (insurers, fund managers, law firms, etc.). https://www.mbie.govt.nz/dmsdocument/712-financial-services-council-submission-faa-review-consultation-paper-pdf

[8] UPDATE: Shipley departure not about Mainzeal, says FSC, BusinessDesk (4 Jun 2015) – News item noting Jenny Shipley’s replacement as FSC Chair by Rob Flannagan and context of Mainzeal lawsuit at the time. https://businessdesk.co.nz/article/update-shipley-departure-not-about-mainzeal-says-fsc

[9] Financial Services Council – Annual Report 2019 (published 2019) – Contains registration details (Incorporated Society #831771, IRD 067-359-763) and discusses code of conduct, industry stats (KiwiSaver $50b, $1.2b claims) via CEO report. (PDF on FSC site) https://f.hubspotusercontent10.net/hubfs/7422267/FSC%20Corporate/Other%20Documents/Annual%20reports/FSC%20-%20Annual%20Report%202018-2019.pdf

[10] Financial Services Council – Annual Report 2023 (published Sep 2023) – Financial statements showing revenue (~$2.78m), assets, tax, accumulated funds, confirming FSC as Incorporated Society under 1908 Act. (PDF via FSC site) https://7422267.fs1.hubspotusercontent-na1.net/hubfs/7422267/FSC%20Corporate/Documents/Annual%20reports/FSC%20Annual%20Report%202023-1.pdf

[11] bizDB – Financial Services Council of NZ Inc. (retrieved May 2025) – Business directory info giving NZBN 9429043008391, registered address (Level 17, Commercial Bay Tower) and noting entity type “Incorporated Society”. https://www.bizdb.co.nz/index/FINANCI/ (entry 68 on the page)

[12] FSC, Workplace Savings announce merger, Insurance Business NZ (1 Jul 2019) – Press coverage of the merger between Financial Services Council and Workplace Savings NZ, noting combined membership ~80 organisations. https://www.insurancebusinessmag.com/nz/news/breaking-news/fsc-workplace-savings-announce-merger-170997.aspx

[13] Health Funds Association of NZ and FSC announce merger, FSC Media Release (26 Nov 2020) – Official announcement of HFANZ merging into FSC to form one organisation from 1 December 2020. (PDF via FSC site) https://f.hubspotusercontent10.net/hubfs/7422267/Media%20Releases/2020%20MRs/20201126%20FSC%20HFANZ%20Merger%20Media%20Release.pdf

[14] Financial Services Council – How We Work (Rules & Code), FSC website (retrieved 2025) – States that FSC’s Rules (constitution) as accepted by Registrar on 7 Nov 2019, outlines vision and aims including representing industry to regulators and promoting best practice, and describes the self-regulatory Code of Conduct launched by members. https://www.fsc.org.nz/how-we-work

[15] Financial Services Council says more than half of Kiwis worry about money every week, Interest.co.nz (Ella Somers, 30 Apr 2025) – Article referencing FSC’s Financial Resilience Index findings about consumer financial anxiety, demonstrating FSC’s public research output shaping narrative. https://www.interest.co.nz/personal-finance/120695/financial-services-council-says-more-half-kiwis-worry-about-money-every

[16] Inland Revenue / Tax Policy – Cabinet paper: GST on fees for managed funds (2022) – Background on proposal to charge full GST on fund manager fees and noting “large providers represented by FSC believe full GST cost will…” (indicating FSC’s stance in officials’ papers). (From TaxPolicy.ird.govt.nz) https://www.taxpolicy.ird.govt.nz/-/media/project/ir/tp/publications/2022/2022-ir-cab-22-sub-0010/2022-ir-cab-22-sub-0010-pdf.pdf

[17] KiwiSaver U-turn: Tax proposal for fees scrapped after opposition, NZ Herald (28 March 2022) – News article detailing the government’s reversal of the KiwiSaver GST policy after industry (and eventually widespread) opposition, quoting the FSC’s welcoming response and describing FSC’s criticism of the policy as “legislative overreach” during a cost-of-living crisis. https://www.nzherald.co.nz/nz/kiwisaver-u-turn-tax-proposal-for-fees-scrapped-after-opposition/NKMH6477OR7QGKTRY2XMAOG64I/

[18] Financial Services Council welcomes Government decision on GST, FSC Media Release (March 2022) – Public statement by FSC applauding the withdrawal of the GST on fees proposal, framing it as positive for KiwiSaver savers (with quotes echoing NZ Herald content). (Media release mirrored on FSC blog) https://blog.fsc.org.nz/fsc-welcomes-govt-gst-decision

[19] Financial Services Council – Submission on NZ Income Insurance Scheme (Apr 2022) – FSC’s official submission to MBIE on the proposed scheme, advocating for a public-private partnership approach and expressing industry’s concerns on certain aspects (health/disability focus, etc.), signed by CEO Richard Klipin. https://www.mbie.govt.nz/dmsdocument/24598-financial-services-council-nz-new-zealand-income-insurance-scheme-submission-pdf

[20] Richard Klipin calls end of his innings at FSC, Good Returns (13 Feb 2024) – News blurb noting Richard Klipin’s resignation as FSC CEO after 7 years, indicating he’ll stay until replacement is found (and referencing his next role in Australia). https://www.goodreturns.co.nz/article/976521218/richard-klipin-calls-end-of-his-innings-at-fsc.html

[21] Kirk Hope takes helm as FSC CEO, NZ Adviser (18 Sep 2024) – Trade news piece announcing Kirk Hope as new FSC CEO, noting his background as former BusinessNZ chief and expertise in policy and advocacy. https://www.mpamag.com/nz/news/general/kirk-hope-takes-helm-as-fsc-ceo/459212

[22] FSC Board Chair Rob Flannagan to step down after nine years, FSC Blog / LinkedIn (1 Sep 2023) – Announcement that Rob Flannagan will depart as FSC Chair in Dec 2023, after extending his term to assist CEO transition, acknowledging his 9 years of service. (Referenced via LinkedIn) https://www.linkedin.com/feed/update/urn:li:activity:7105372070194012160/

[23] OECD (via NZ Treasury) – OECD Lobbying regulatory outlook 2021: NZ (2021) – OECD ranking noting NZ is 34th of 38 in regulating lobbying, and commentary that NZ “is not close to frontier of best practice…does not foster a level playing field”, providing context for NZ’s lax lobbying rules environment in which FSC operates. (Summarized in Bryce Edwards’ piece)

[24] Policy must serve the public, not just those with money and access, Transparency International NZ (Anne Tolley & Boyd Swinburn quotes, Apr 2025) – Statements from “Let’s Level the Playing Field” lobbying reform campaign highlighting dangers when industry lobbying goes unchecked and powerful interests override public interest, implicitly referencing the need to check groups like FSC.

Spot anything in this entry that is wrong? Please either leave a comment at the end or email, in confidence: bryce@democracyproject.nz