Watchdog gets animated

The Financial Markets Authority is the latest government body to turn to animation to get its message across.

First, the Reserve Bank used animation to show how it ‘‘stress-tests’’ banks to see how they would behave in a financial crisis. Then, the Commission for Financial Capability used superhero animation to deliver its retirement policy recommendations.

Now the FMA has used animation to bring to life its consumer guide on the minimum standards expected of the likes of financial advisers, insurers, fund managers, and banks. There are five key elements.

Competence: Your financial service provider must have the skills and experience to offer the right service or product. They must display care, diligence, and skill.

Honesty: They must balance their business needs with yours, and tell you about any conflicts of interest they have. They must act in your interests, treat you honestly and fairly, and fulfil their duties and obligations.

Information: They must listen to what you want, and help you understand your options. They must encourage you to weigh up the pros and cons of your decision before you make it. They must keep in touch with you, and help if something goes wrong.

Payment: They must clearly explain what you will be paying, now and in the future, for their products and services. They must also explain why those fees are reasonable for those products and services.

Complaints: They must enable their staff to do the right thing for their customers. They must identify and manage problems, and respond constructively. If you can’t resolve an issue by dealing directly with your provider, they must direct you to their disputes resolution scheme.

The FMA wants to be seen as ‘‘both guard dog and guide dog’’ for capital markets, said the FMA’S Paul Gregory.