FMG self-reported two historical issues associated with the Mutual’s previous approach to Specified Items and Indexation to the Financial Markets Authority (FMA). In doing so, FMG has and continues to cooperate fully with the FMA and takes full responsibility for the issues. FMG has now entered into an Enforceable Undertaking with the FMA, including agreeing to make a payment in lieu of a pecuniary penalty.
On behalf of the Mutual, I sincerely apologise to our clients and Members for these historical issues and for the inconvenience they have caused.
These issues have meant that, over time, some clients have paid more than they needed to.
All affected clients have been contacted, and our refund processes will be substantively complete by the end of March 2026. Approximately $5.3 million will have been paid to clients in refunds and claim top-ups once these issues are fully remediated. FMG has strengthened our systems, processes, and controls to help prevent similar issues occurring again in future.
FMG remains committed to maintaining the trust of our clients and Members and we are grateful for the patience they have shown us as we worked through these issues.
As an insurer that has supported rural New Zealand Aotearoa for over 120 years, FMG prides itself on honouring its promises, fixing problems when they arise, and doing all it can to learn from them.
Adam Health, Chief Executive Officer
For any media enquiries please contact media@fmg.co.nz
