Financial Services Regulation Update - October 2022
Keep up-to-date with the key developments affecting the financial services sector.
Key areas this month include:
Banks and non-bank deposit takers (NBDTs)
The Deposit Takers Bill 2022 has been introduced and had its first reading; the Select Committee is now accepting submissions on it. The Reserve Bank has launched a consultation on the approach to risk weightings under the capital adequacy rules. The Orders that regulate banks’ disclosure statements have been amended.
Banks, NBDTs, and insurers
MBIE has published an exposure draft of proposed Regulations under the CoFI regime for feedback. These draft Regulations relate to prohibited sales incentives and the licensing fees.
MBIE has released exposure drafts of the amending Regulations and revised Responsible Lending Code, to effect the second round of changes to the loan affordability rules. Submissions close this month.
Financial market infrastructures (FMIs)
The draft standards for FMIs under the Financial Market Infrastructures Act 2021 have been released for feedback, as has the draft guidance on the initial pricing standard for Visa and Mastercard card transactions.
Exemption notices have been issued for disclosures using overseas GAAP and for the financial statements of schemes that consist only of separate funds.
The NZ Markets Disciplinary Tribunal rules and procedures have been amended, effective 17 October 2022.
AML, crime, and sanctions
Two new Bills relating to intervention in criminal activity and the recovery of criminal proceeds will have implications for (among other things) the AML Act and KiwiSaver funds. The Regulations relating to prescribed transaction reporting under the AML Act will no longer expire on 10 October 2022. The Regulations about Russian sanction have been further amended.
The Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Bill (No 2) 2022 has been introduced and had its first reading. The Select Committee is currently accepting submissions on it.