Migrant-focused life adviser Filcare Services has had its permit to operate revoked after breaking its New Zealand licence obligations.

The business faced a Financial Markets Authority inquiry following the termination of its distribution agreement with Fidelity Life Assurance Company and AIA, and the regulator found its advisers failed on many fronts.

“In particular, we observed that clients did not receive adequate nature and scope disclosures and were therefore unable to make an informed decision about whether to seek, obtain or act on the advice,” FMA head of perimeter and response Helena Lewis said.

“We also found that Filcare advisers failed to demonstrate that the recommendations made to clients were suitable.”

Regarding advice on policy replacement, the FMA says there was no evidence clients were informed of potential risks, such as losing benefits they might have received under original policies.

“Clients were also not given sufficient time to understand the advice before deciding whether to follow through with it,” Ms Lewis said.

The FMA says the financial advice provider licence was cancelled at the request of Filcare. The business had a client base of 1800 people, mostly migrant workers from the Filipino community.