1/11/2021·1 min to read
Financial Services Regulation Update - November 2021
Keep up-to-date with the key developments affecting the financial services sector.
Key areas this month include:
Climate risks reporting
The Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 has been enacted. Its amendments to the Financial Reporting Act 2013 are largely in force. The XRB has started consulting on the Climate Standards to be made under it.
Retail payment system
The Retail Payment System Bill 2021 will regulate the retail payment system, including merchant service fees.
AML/CFT Act review
The Ministry of Justice is consulting on how well the AML/CFT Act works and whether any changes to it are needed.
Reserve Bank consultations
The Reserve Bank is consulting on its policy for branches of overseas banks, and on its enforcement framework across the sectors it regulates (ie banks, NBDTs, and insurers).
Taxation of trusts
From the 2021-22 income year, trustees of domestic trusts that have assessable income must prepare financial statements and provide more information with their income tax returns. Inland Revenue is consulting about the minimum information in these financial statements. It has also issued a draft operational statement about information gathering.
FMC Act exemptions
FMC Act exemptions have been notified for overseas banks offering simple debt products, overseas FMC reporting entities, overseas banks and insurers, disclosures using overseas GAAP, equine bloodstock investments, corporate trustees, and $750,000 minimum investments in Kauri bonds.
The provisions about the benefit test will commence on 24 November 2021. There are new Regulations relating to timeframes and to freshwater or seawater areas.