Financial Markets Authority files proceedings against IAG

The Financial Markets Authority (FMA) has filed civil proceedings against IAG, New Zealand’s largest general insurer, alleging 11 breaches of s 22 of the Financial Markets Conduct Act – the section dealing with false or misleading representations.

About 269,000 customers are affected, the FMA says, and the alleged breaches resulted in over-charging to the tune of $35 million, with a net gain to IAG of $31.1m. Some of the alleged breaches go back 20 years but the FMA’s claim is limited to the insurer’s conduct since the FMCA took effect in April 2014.