The Financial Services Council of New Zealand (FSCNZ) has retained all major insurer and bank members after a number resigned last year when the council commissioned a controversial report into life insurance advice.

Many insurers said the report went beyond the scope of what they had agreed to fund.

In the FSCNZ annual report Chairman Rob Flannagan says the notification period for resignations is 12 months, and during that period most of the companies involved have reversed their decisions.

“Eleven members or associate members of the FSCNZ notified their resignations in the year to October 2015,” he said. “The majority of those members have returned – or remain active in the FSCNZ – by mid-2016.”

Mr Flannagan says a few associate members left.

“I am confident the FSCNZ is steadily returning to a stable footing after a period of disruption. Notably, the [council] maintains the ability to do largely the same amount of work in the coming year as it has done in the immediate past.”

Mr Flannagan says merger talks with Workplace Savings New Zealand (WSNZ) are under way.

“The boards established a steering committee, comprised of representatives of the FSCNZ and WSNZ, which is overseeing work on a potential merger.

“Initially the work has comprised an analysis of the two bodies and a study of what would be gained from merging them.”

The FSCNZ reported a rise in revenue for the year to June 30 to $NZ1.3 million ($1.2 million) from $NZ1 million ($941,760) the previous year.

Total expenses were up to $NZ1 million ($941,760) from $NZ839,831 ($790,951). This delivered a 10.2% drop in operating surplus to $NZ219,476 ($206,724).

Mr Flannagan warns the financial result is deceptive because the council expects a fall in revenue this financial year.

“On a conservative forecast, we anticipate members’ revenue at a little more than $NZ800,000 ($753,571), a reduction of 28.2% on [2015/16],” he said.

“This reflects the across-the-board fee cut we implemented for 2017.”