Financial Services Regulation Update - April 2023
Keep up-to-date with the key developments affecting the financial services sector.
Key areas this month include:
Money laundering and criminal proceeds
Following its 2022 review of the AML Act and Regulations, the Ministry of Justice reported that there would be a series of changes to the legislation; the Ministry has now published the first package of draft amendments to the Regulations for feedback. The Criminal Proceeds (Recovery) Amendment Act 2023 has been enacted and is now in force. The Criminal Activity Intervention Legislation Bill may also have been enacted, but due to ongoing issues with the official website we cannot confirm this at the time of writing.
MFAT has issued guidance about reporting under the Russia Sanctions Act. The sanctions have been extended to additional Russian and Belarusian political and military actors.
The Commerce Amendment Act 2022 will be fully in force on 5 April 2023, with amended section 36 on the misuse of market power coming into force then. The Commerce Commission has published guidelines on how it will assess conduct under amended section 36. It has also published guidelines on how businesses can collaborate in response to emergencies such as Cyclone Gabrielle.
The Reserve Bank has released a draft of its guidance to banks, NBDTs, and insurers on managing climate related risks, for feedback. The FMA is consulting on exemptions from the climate reporting duties under Part 7A of the FMC Act for foreign listed issuers.
Managed investment schemes
The FMA is consulting on whether to renew (for a further five years), and amend, the class exemption for MIS managers where assets do not have an appropriate market index.
The Construction Contracts (Retention Money) Amendment Bill passed its third reading. It has apparently also been enacted, but due to ongoing issues with the official website we cannot confirm this at the time of writing.
The Digital Identity Services Trust Framework Bill passed its third reading. It may also have been enacted, but due to ongoing issues with the official website we cannot confirm this at the time of writing.
The Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill (No 2) was apparently enacted at the end of March 2023, but due to ongoing issues with the official website we cannot confirm this at the time of writing. Inland Revenue is consulting about draft public rulings on cryptoasset payments and benefits to employees, and about investing in United States limited liability companies (LLCs).