Pressure on for review
The Financial Markets Authority’s joint review of culture and conduct in the banking and insurance sectors with the Reserve Bank is taking up a lot of the regulator’s time as it works towards filing an October report.
Chief executive Rob Everett told a media briefing on the FMA’s annual corporate plan that the review had taken precedence over some other work programmes. Everett said the diversion of resources underscores the FMA’s ability to meet intense workloads when needed.
“Our resource allocation shifts and evolves as circumstances dictate,” Everett said. “It’s fair to say the conduct and culture review did take resource from other work.”
The market watchdog and central bank launched a joint review of the culture and conduct of banks and life insurers after a Royal Commission inquiry into Australia’s financial sector revealed some disconcerting practices.
The regulators have told banks and life insurers they need to prove why they don’t believe that kind of misconduct is taking place on this side of the Tasman.
Everett said conduct improvements had been patchy. “We can see a shift happening in some spaces, and also in some spaces where that’s not happening,” he said. —
Athree-month emergency stint that became a fiveyear gig is coming to end for Stewart Sherriff, the chief executive of challenger telecommunications provider 2degrees.
The straight-talking Scotsman had been chairman of 2degrees since 2010 when he stepped into the breach in April 2013 after the death of the company’s then-CEO, Eric Hertz, in a light plane crash in the South Island.
“I arrived as interim CEO for what I thought would be a threemonth stay.
“We were looking forward to seeing a bit of New Zealand and the fact that it was heading into the rugby season was certainly a bonus,” he said in a statement.
He will retire from the role but only once a replacement has been found, and will remain a director.
Washington State-based 2degrees chairman Brad Horwitz said Stewart’s involvement with the company dated back to the early 2000s, when the idea of a third entrant mobile operator was first suggested.
“Stewart and I evaluated the viability of a third operator in New Zealand and came back very excited about the opportunity,” said Horwitz.
“He has since held a number of board roles, including chairman, before moving to New Zealand to lead the company to profitability.
“That experience is unique, so we’ve asked Stewart to stay involved as a director.”
Owned by Toronto Stock Exchange-listed Trilogy Group, 2degrees reported a rise in net profit to $19 million in the year ended December 31, from $14.3m in 2016, on a 4.3 per cent revenue gain to $732.7m.
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