Update on Financial Sector Reforms
Progress To Date and Future Reforms
The reviews which led to the Financial Sector Reforms began with a comprehensive review of the financial sector through the Review of Financial Products and Providers ("the Review") in 2005, and resulted in a number of important legislative interventions.
- The Reserve Bank of New Zealand Amendment Act 2008 allows the Reserve Bank to impose minimum prudential standards upon non bank deposit takers, including finance companies, building societies and credit unions.
- The Financial Service Provider (Registration and Dispute Resolution) Act 2008 requires financial service providers to register, and join an approved dispute resolution scheme.
- The Financial Advisers Act 2008 sets minimum standards for those giving financial advice and provides for financial advisers to be centrally regulated by the Securities Commission.
This will help to increase transparency and accountability in the financial sector:
In addition to these legislative changes officials are continuing to work on legislative drafting changes required for the Insurance sector given the policy decisions made by Ministers in late 2007.
See:
Reform of the Securities Act 1978
Daily progress in the House for Tuesday, 23 September 2008 [external link]
Reserve Bank welcomes new responsibilities [external link]
Beehive media release
Review of Financial Products and Providers
Financial Advisers
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