1/09/2022·1 min to read
Financial Services Regulation Update - September 2022
Keep up-to-date with the key developments affecting the financial services sector.
Key areas this month include:
The Reserve Bank has opened its final consultation about the extent to which overseas banks may operate in New Zealand through local branches.
The Ministry of Justice is consulting on potential changes to the notification rules for collecting personal information. Additionally, the Privacy Commissioner is consulting on the use of biometric information.
The Government has announced a second round of changes to the affordability enquiries that lenders must make. The Commerce Commission has issued updated guidelines on unfair contract terms (to include small trade contracts) and new guidance on unconscionable conduct. It is also seeking feedback on its draft guidance for businesses on how to remediate consumer law breaches.
FMCA financial reporting
Restricted schemes have been exempted from certain disclosure and reporting requirements under the FMC Regulations. Additionally, overseas custodians of scheme property have been exempted from obtaining assurance engagements from New Zealand auditors.
The Reserve Bank is consulting on pathways to improve Māori access to capital (both equity and debt).
NZX has opened consultations on proposed amendments to its Corporate Governance Code and its ESG Guidance Note.
The Overseas Investment (Forestry) Amendment Act 2022 has been enacted and is in force.
AML and sanctions
The Regulations under the AML Act relating the cross-border transportation of cash have been amended, as have the Regulations relating to sanctions against Russia and various MENA countries.
The Taxation (Annual Rates for 2022-23, Platform Economy, and Remedial Matters) Bill 2022 was introduced on 30 August (albeit the Government has since announced that it will not proceed with the Bill’s provisions that impose GST on managed fund and KiwiSaver fees). Inland Revenue has issued a draft interpretation statement about company loss rules for feedback.