Insurance Sector
17 December 2007
Finance Minister Michael Cullen today announced Cabinet decisions regarding a new prudential regulatory framework for insurance. The Reserve Bank welcomed the Cabinet decisions in a news release today.
The Bank’s role as regulator and supervisor of the insurance sector will include licensing insurers and enforcing disclosure requirements, including a mandatory rating of an insurer’s financial strength.
For more detailed information on the key features of the new arrangements please see Questions and Answers on Insurance, the Cabinet Paper and the Regulatory Impact Statement (PDF 258KB).
Review of financial products and providers including non-bank deposit-takers
19 June 2007
The Reserve Bank in a news release welcomed the Cabinet decision for the Reserve Bank to be the single prudential regulator for New Zealand, as part of the Review of Financial Products and Providers. For more detailed information on key features of the new arrangements please see “Questions and Answers on Proposals for the Regulations of Non-Bank Deposit Takers”. For the Cabinet decisions included in the Review of Financial Products and Providers please visit the Ministry of Economic Development's website. For the Cabinet decision regarding the Reserve Bank becoming the single prudential regulator please visit the Treasury website.
31 August 2006
Commerce Minister Hon Lianne Dalziel today released a series of nine discussion papers as part of the Government’s review of financial products and providers. The papers propose a framework of regulation for the non-bank financial sector.
You can access the papers at http://www.med.govt.nz/templates/ContentTopicSummary____22180.aspx
6 September 2005
An officials' report to the Minister of Commerce on the Review of Financial Products and Providers has been released publicly. The report is part of the broad-based review of the financial sector regulatory framework being undertaken by the government. The key objective for the review is to develop an effective and consistent framework for the regulation of non-bank financial institutions, financial intermediaries and financial products. The aim of the framework is to promote confidence and participation in financial markets by investors and institutions, and a sound and efficient financial sector. The review was initiated by the government in recognition that some elements of financial sector regulation have not been reviewed for many years and that some aspects are out of step with international standards and codes, and with accepted best practice. The report:
- outlines a framework for the review;
- assesses the current regulatory regime for the non-bank financial sector against the framework for the review, including identifying any issues; and
- provides the preliminary views of officials on the general directions for reform of the non-bank financial sector. These preliminary views will be used to inform the later stages of the review and the work being led by Treasury on reviewing the domestic institutional arrangements for financial sector regulation that is due to report back to Ministers in October 2005 with preliminary conclusions.
You can access an explanation of the first stage of the review at:
http://www.med.govt.nz/templates/ContentTopicSummary____22152.aspx
You can access the report directly at:
http://www.med.govt.nz/templates/MultipageDocumentTOC____14105.aspx
Institutional Arrangements for Regulation of the Financial Sector
21 December 2005
The Review of Financial Products and Providers being undertaken by the Ministry of Economic Development has signalled, in principle, greater prudential regulation of non-bank deposit taking institutions, of some insurers and of some superannuation schemes. The prospect of greater prudential regulation of these financial providers means that it is timely to consider the institutional arrangements for regulation of the financial sector.
In December 2005, Cabinet agreed to prudential supervision of the financial sector being consolidated into a single regulator and has agreed, in principle, that this regulator should be the Reserve Bank. The in principle decision that the single prudential regulator should be the Reserve Bank is subject to further reporting to Cabinet, by end November 2006, on the details of the institutional arrangements for the prudential regulator, and on the Review of Financial Products and Providers.
The Reserve Bank is comfortable with this decision.
You can view the Cabinet paper and the Cabinet minute on the Treasury's website.
