New regulatory initiatives
Initiatives currently under development
Initiative |
Description |
Timing |
|
Non-Bank Deposit Takers Bill |
A bill extending the powers of the Reserve Bank in relation to the prudential regulation of NBDTs. The Minister of Finance issued a press release (PDF 350KB) announcing the August introduction to the House of the Non-Bank Deposit Takers Bill. |
2 August 2011 |
|
Disclosure |
Policy recommendations for prudential disclosure are under development. |
New regulations expected to be released 2012 |
Development of a second Bill for the NBDT sector
Following recent approval by Cabinet in June 2011, the Reserve Bank has released a Cabinet Paper (PDF 179KB) which confirms policy positions relating to the matters discussed in the Reserve Bank's October 2010 consultation paper.
In October 2010 the Reserve Bank released a consultation paper (PDF 148KB) on policy proposals for a second bill for the regulation of NBDTs (following the passing of the Reserve Bank of New Zealand Amendment Act in 2008). This consultation document included proposals for all NBDTs to be licensed by the Reserve Bank, together with fit and proper person requirements for directors and senior office holders, and controls on changes of ownership of NBDTs. They also included a framework for dealing with NBDT distress and failure, and some technical changes to aspects of the regime already enacted.
In April 2012 the Reserve Bank released a consultation paper (PDF 90KB) on proposals for regulations under the second bill (the Non-bank Deposit Takers Bill 2011). One set of regulations is to declare the shares of building societies that are in-substance the same as debt securities to be debt securities for the purposes of the NBDT regime. The other set is to prescribe suitability concerns for the purposes of the new law.
Prudential disclosure requirements
The Reserve Bank and the Ministry of Economic Development have been working together to develop disclosure rules for NBDT prudential requirements. Disclosure of prudential information is necessary to provide greater transparency of an NBDT’s risks, thereby enabling investors to make more informed investment decisions.
The Reserve Bank and the Ministry of Economic Development released a discussion document (PDF 290KB) on the proposed disclosure requirements. The proposal included a set of standardised prudential disclosures to enable easy comparison of risks across the NBDT sector, as well as some changes to the framework in which disclosures are made to make the prudential disclosures more useful. The Reserve Bank is now considering the submissions received.
