Scoop has an Ethical Paywall
License needed for work use Register
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Reducing Barriers For Financial Services

The Government will reform financial services regulations, ensuring clarity and cutting red tape for both institutions and Kiwis, Commerce and Consumer Affairs Minister Andrew Bayly announced at a Financial Services Council conference today.

The reforms will address aspects of financial market conduct regulation and areas of overlap and duplication by the key regulators, in addition to simplifying licensing requirements.

“Excessive layering of regulation and legislation has led to loss of coherence in governance of the financial sector, and while well intentioned, are failing to deliver optimal outcomes for Kiwis and businesses.

“At present some financial institutions find themselves accountable to three regulators; namely the Reserve Bank of New Zealand (RBNZ), Financial Markets Authority (FMA) and Commerce Commission.

“We will move to a simplified model, with the RBNZ being the prudential regulator, and a single conduct regulator being the FMA. To achieve this, conduct oversight of the Credit Contracts and Consumer Finance Act (CCCFA) currently performed by the Commerce Commission will transfer to the FMA.

“Many financial institutions find themselves holding multiple licenses from both the FMA and the RBNZ, adding to operational burden. We want to simplify this by moving to one conduct licence overseen by the FMA, and one prudential licence by the RBNZ.”

Mr Bayly also announced plans to reform the Financial Markets (Conduct of Institutions) Amendment Act (CoFI) and the CCCFA at the conference today.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“CoFI serves an important purpose to support good financial outcomes for consumers, but it needs streamlining so financial institutions have certainty and flexibility to get on with the business of delivering for their customers.

“The primary responsibility for developing appropriate Fair Conduct Programmes (FCP) lies with the board and management of the financial institution. This means that it is up to the financial institution to identify key areas of risk and tailor them appropriately. However, it is my expectation that the FMA will provide clear guidance as to the minimum requirements to ensure the FCPs are sufficiently developed.

“For example, a FCP will look different for a credit union with two hundred customers compared to a bank with two million, but the importance of fair treatment remains the same”, Mr Bayly said.

The CCCFA will also be reformed, to ensure vulnerable consumers are protected without preventing Kiwis getting the credit they can afford.

“These over-prescriptive consumer lending laws have led to Kiwis missing out on loans.

“This is another important step in meeting our coalition agreement with ACT, to rewrite the CCCFA to protect vulnerable consumers without unnecessarily limiting access to credit. The Government is proposing a two-step process to amend the CCCFA, which changes to be announced over the coming months.”

Mr Bayly also stated that it is his intention to simplify, modernise and digitise the Companies Act, as aspects of it are thirty years out of date and could be improved.

“These reforms will improve the business environment for financial institutions so that we can get the economy back on track.”

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On National Spreading Panic About The Economy


It is a political strategy as old as time. Scare the public with tales of disaster and stampede them into supporting your ideological agenda because they believe There Is No Alternative. Yet, if the NZ economy truly is as “fragile” as PM Christopher Luxon says it is... Then how come New Zealand has enjoyed a double AA+ credit rating from the international rating agencies for so long? If we have truly been in the thrall of incompetent tax, spend and borrow extremists for the past six years, how come our net government debt burden is only in the middling average of OECD countries, and how come our government debt-to-GDP ratio – however you measure it – is less than half the average for the Asia-Pacific region?..
More


 
 
Government: Budget Will Be Delivered On 30 May

Plans to deliver tax relief to hard-working New Zealanders, rebuild business confidence, and restore the Crown’s finances to order will be unveiled on 30 May, says Nicola Willis. More


Government: Ministers Reaffirm Pacific Connections

Foreign Minister Winston Peters and Health Minister and Minister for Pacific Peoples Dr Shane Reti reaffirmed the importance of New Zealand’s connections to the Pacific by visiting Tonga, Cook Islands, & Samoa. More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said. More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996. More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.