• Home
• Regulation
• Regulatory Policy
• Policy Guidance Material
• BCCSs Guidelines
• Annex 1

• Regulatory Policy

• Policy Guidance Material

• Requirements Guidelines
• Reg. Compliance Guidelines
• Policy Options Guidelines
• BCCSs Guidelines

• Example 1
• Example 2
• Example 3

Example 1

Note: The level of detail provided in these examples is not required in the BCCS, rather this is a useful analytical tool.

A useful example to demonstrate steps in identifying the compliance cost component of a regulatory obligation is the (now obsolete) broadcasting fee. Previously, under the Broadcasting (Public Broadcasting Fees) Regulations 1989 any person owning, hiring, possessing, or using a television set was liable for payment of the Public Service Broadcasting Fee. In addition, the regulations required television dealers and hire firms to pass the date of sale or hire, full name and address of the television purchaser or hirer to NZ on Air. The practical steps involved in collecting and paying the Fee, and the type and incidence of cost are as follows.

Example 2

Under the Building Act 1991 an owner is required to obtain a Building Consent from a Territorial Authority prior to commencing construction on a building. The Territorial Authority involved is required to keep records that include all plans and specifications submitted with the application. When the building is completed, and the Authority is satisfied that it complies with the approved documents and other statutory requirements, the owner is issued with a Code Compliance Certificate.

The building will also be issued with a Compliance Schedule by the Territorial Authority if it has systems such as automatic sprinklers, automatic doors, lifts or air-conditioning systems. The owner is required to employ an Independent Qualified Persons to inspect, maintain and report on these Compliance Schedule items.

Example 3

Prior to any offer of securities to the public, the Securities Act 1978 requires the registration of a prospectus if those securities are to be allotted. The Securities Act and the Securities Regulations 1983 require certain information be disclosed in the prospectus, that, where required, documentation be in a prescribed format, and that all information be registered with the Registrar of Companies. The practical steps involved in making an offer of securities to the public and the type and incidence of cost are as follows:

² Note that the Broadcasting Fee itself is not a compliance cost. The fee represents the direct component of the regulatory obligation.

³ However, the Issuer must have a prospectus and investment statement to comply with the Securities Act and must provide a copy of the prospectus to an investor, if requested.