Whānau should not be facing significant harm from of high-pressure sales where commissions mean salespeople are incentivised to provide expensive products or services of little or no value. Such practices should be prohibited to prevent price discrimination that worsens the situation of whānau who are already disadvantaged relative to others’ financial inclusion.
FinCap welcomes the opportunity to comment on the Ministry of Business, Innovation & Employment (MBIE) Exposure draft regulations on sales incentives under new conduct regime Consultation paper (Consultation Paper). We welcome any action that could prevent the inappropriate sale of financial products and services because such actions can cause long-term financial and social harm for whānau. We encourage strong drafting of regulation in response to policy decisions already made to ensure the benefit of whānau are front and centre in salespeoples’ minds when trading.