ANZ New Zealand (ANZ) has admitted to breaches of the Financial Markets Conduct Act 2013 (FMCA) for misleading representations it made in the supply of credit card repayment insurance (CCRI) to certain bank customers. A hearing to determine the penalty was held today at the High Court at Auckland.
The admissions were made as part of a resolution reached between the Financial Markets Authority (FMA) and ANZ of proceedings that the FMA filed in June 2020. The FMA had alleged ANZ charged certain customers for CCRI policies that offered no cover or benefit. The FMA claimed that ANZ breaches section 22 of the FMCA by making false and misleading representations about the cover conferred by certain policies. The FMA proceedings sought both a pecuniary penalty of $280,000 and declarations of contravention.
These are the first civil proceedings the FMA has brought under the fair-dealing provisions in part 2 of the FMCA. The FMA is now awaiting the decision of the Court and will comment after it is issued.