New Industry Polling Released
For immediate release – 13 December 2006
Finance industry wants similar regulatory ‘playing field’ to other nations
New Industry Polling Released
Senior finance industry representatives overwhelmingly believe that New Zealand should adopt regulations that are consistent with international standards and codes unless there’s a good reason for NZ to opt out. That’s according to industry opinion polling released today by Finsia – the Financial Services Institute of Australasia.
The launch of the polling, conducted by Roy Morgan Research, coincided with Finsia’s inaugural ‘Government Speaks – Protecting Kiwi Wealth - a new future for financial services’ event in Wellington today. The event featured keynote addresses by the Hon Lianne Dalziel, Minister of Commerce, Minister for Small Business and Minister of Women’s Affairs and the new Opposition Leader, Mr John Key MP. Proudly sponsored by ING (NZ) Limited, key issues addressed included providing fresh insights into the future of the finance sector and the Government’s current Review of Financial Products and Providers (RFPP).
The Finsia/Roy Morgan Industry Opinion Poll of Finsia members was conducted in late November 2006. The focus of the poll was protecting Kiwi wealth and the Government’s numerous reviews into business regulation and financial services, including the RFPP.
Releasing the findings, to coincide with the official opening of Finsia’s ‘Government Speaks’ series, Finsia’s CEO, Mr Brian Salter said, “New Zealand’s finance industry is currently in a new phase of evolution. Finsia’s poll aimed to find out how 2007 was shaping up for the sector”.
Key findings of Finsia’s ‘Have Your Say’ Industry Opinion Poll:
Global regulatory trends:
97% either strongly agreed or agreed with the Government’s
view that “any regulation developed as part of the Review
of Financial Products and Providers will aim to be
consistent with international standards and codes, unless
there is good reason to take a different
Fixing the industry/which sectors need an overhaul: 44% believe non-bank deposit takers require the most urgent regulatory attention; followed by 32% who thought financial planning needs attention;
Effectiveness of Government’s current RFPP:
- PROS: The majority believe the current RFPP will be effective in ensuring the NZ sector is consistent with international best-practice (62%) and will enhance the stability and reputation of the sector overall (53%); 50% believe it will improve the quality of financial advice and 50% think it won’t;
- CONS: 91% believe the review won’t reduce compliance costs, won’t protect Kiwi Wealth (62%), won’t raise consumer confidence and increase savings overall (53%); and
Watch dog role: 49% agree that the best regulatory regime for NZ is the Reserve Bank and a Securities and Investments Regulator.
“Finsia looks forward to continuing its dialogue with key stakeholders on major regulatory, policy and legislative issues affecting NZ’s financial services sector”, Mr Salter said.