Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

COVID-19 Level 4 Essential Services – Financial Sector

Following the government announcement that COVID-19 Level 4 alert will be introduced from 11.59pm on 25 March only essential services will be permitted to remain open at a central place of business.

The Government determined that financial services are essential services. These are banking, insurance and other financial institutions which are deemed to be essential services and exempt from the directive to close.

The Council of Financial Regulators (CoFR) have consulted with the Government to provide detail on those financial services that should be considered to be essential services. This includes all financial institutions that are essential to ensure continue operation of our financial system and access to this system for all New Zealanders. This includes (but may not be limited to) the following:
 

Financial services deemed essential financial servicesIdentified essential functions include

Banking services/NBDT/Credit Unions
Applies to all registered Banks and Non-Bank deposit takers listed in the following registers:

Register of Registered banks in New Zealand

Register of licensed NBDTs

 

Banks and Non-Bank Deposit Takers will have the ability to continue to support customers (new and existing), as applicable, with access to deposits and credit, ATM’s for cash withdrawals, credit/debit cards, EFTPOS, foreign exchange, make domestic and international payments and process cheques. Access to mobile, phone and internet banking and call centres will be continued. We would encourage use of electronic channels wherever possible to limit the need to go into branches. Operators of and critical service providers to Banks, NBDT’s plus payment and settlement systems operating in New Zealand that are needed to support the banking sector and the abovementioned will also continue to operate.
Insurance services – applies to all licensed insurers in the following register:

Register of licensed insurers in New Zealand
 

Applies to all licensed insurers - life, non-life and health. Ongoing transactions/customer needs for access to insurers will include changes to policies, claims, policy renewals, which may be at a significantly higher levels than business as usual, as well as some new business, which places ongoing reliance on brokers/financial advisers. Ongoing requirements to manage financials, financial impacts, claims etc. requires access to actuaries, lawyers, trades, loss assessors etc.
We anticipate that Essential Supply chain functions may include:

Brokers (noting direction that financial advice is non-essential, advisers should work from home or engage with clients over the telephone/internet)
IT/telephony support companies
Database/data support services
Postal service
External actuaries
External legal firms
Accounting firms
Loss assessors
Loss adjustors
Vehicle repairers
Trades – e.g. builders, plumbers, electricians, painters
Access to replacement parts for claims settlement (e.g. potentially any household or business item including building supplies
Access to new vehicles (car insurance claims)

Access to medical records through doctors’ surgeries
Psychologists, counsellors etc. (mental health claims)
Access to medical laboratories for medical tests
Private hospitals and associated staff/professionals
Access to external medical specialists.

The expectation is for industry to focus on making repairs to buildings and vehicles and replace goods that are necessary for provision of essential services and to maintain health and safety of homes.

NZXFacilitating access to capital, ensuring fair and orderly secondary trading, providing price discovery for capital raising mechanisms, ability for investors to liquidate investments as required. 
Broking servicesFacilitating the effective running of an orderly market, enabling secondary trading, enabling access to capital for businesses and investment/return of capital for investors.
Payment and settlement system providersEnsuring smooth and orderly running of capital markets.
Fund managers and investment managementEnabling access to capital for businesses and investors.
KiwiSaver providersEnabling and managing KiwiSaver hardship claims
Administration support servicesEnsuring smooth and orderly running of capital markets.
Licensed SupervisorsEnabling and managing KiwiSaver hardship claims
CustodiansEnsuring smooth and orderly running of capital markets.
Credit rating servicesEnabling the flow of capital to businesses and consumers
Finance CompaniesEnabling the flow of capital to businesses and consumers.
Registry ServicesEnabling smooth and orderly running of capital markets.


Financial services firms should decide what operations and infrastructure are essential to maintain customer services and to support the financial system, including engaging with regulators/ government as appropriate. While we expect some functions will be able to be performed remotely, a limited number of staff may be required to be onsite. Firms should keep these numbers to an absolute minimum and maintain physical distancing protocols.

Financial advice is not covered by the definition from the Government of workplaces/offices that need to remain open, but it clearly remains an important service. Our expectation is that most financial advisers should be able to work from home, with no need to staff offices.

CoFR agencies note the NZBA’s media release on opening arrangements for banks. This approach should be used as the basis for operations for credit unions and non-bank deposit takers who operate branches.

Any questions to the FMA should be directed to:
Questions@fma.govt.nz

Any questions to the RNBZ should be directed to:
rbnz-info@rbnz.govt.nz

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>

ALSO:

Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>

ALSO:


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>

ALSO:

Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>

ALSO:

Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>

ALSO: