Review of financial products and providers

The review of financial products and providers was carried out from 2005 until 2008 and led to a number of new pieces of legislation.

• Financial Service Providers (Registration and Dispute Resolution) Act 2008.
• Reserve Bank of New Zealand Amendment Act 2008.
• Insurance (Prudential Supervision) Act 2010.
• Securities Trustees and Statutory Supervisors Act 2011.

It also resulted in 2007 Cabinet decisions on mutual governance and insurance contracts and informed the current review of securities law.

Scope

The review considered:

• Registration of financial service providers.
• Insurance.
• Supervision of issuers.
• Consumer dispute resolution and redress.
• Non-bank deposit-takers (friendly societies, credit unions, building societies, industrial and provident societies, and finance companies).
• Collective investment schemes (including superannuation).
• Mutuals' governance.
• Securities offerings.
• Platforms and portfolio management services.

Top

Process and outcomes

The review was undertaken in four stages.

1. Framework, problem identification and general directions for reform

This outlined a framework for the review, an assessment of the current regulatory regime against the framework, and some initial thinking on the problems and high-level directions for reform.

This stage was based on the information the government had received through previous consultation and from additional input that we sought from key stakeholders. We then made an assessment to guide the initial direction for the review.

2. Development of draft options for reform

This entailed the development of draft options for reform. We developed these options for reform in conjunction with advisory groups made up of people from key industry organisations, industry participants, professional organisations and government bodies.

Participants were not expected to attend as representatives of their organisations. Rather, as people with industry expertise and knowledge advising us on options development, costs and benefits of various proposals and implementation.

3. Release of discussion documents for consultation

Discussion documents were released in August 2006 on options for reform. Submissions closed in December 2006.

4. Submissions analysis and preparation of policy recommendations

Over 140 submissions were received from organisations and individuals, many of them addressing a number of the nine discussion documents released.

Alother government agencies involved in the review, summarised these submissions and made policy recommendations.

Related projects

•  Review of securities law