Council of Financial Regulators
The Council of Financial Regulators (CoFR) aims to contribute to the efficiency and effectiveness of New Zealand's prudential and financial markets regulatory model and to promote the stability of the New Zealand financial system by providing a forum to review industry trends and issues.
The members of CoFR are:
- Reserve Bank of New Zealand (RBNZ); and
- Financial Markets Authority (FMA).
- Ministry of Business, Innovation and Employment (MBIE); and
- The Treasury.
CoFR formally meets quarterly to discuss financial markets regulatory issues, risks and priorities. It comprises of senior leaders from each agency including the RBNZ Governor and the FMA Chief Executive who alternate chairing meetings. From time to time, CoFR may invite representation from other regulatory agencies and public authorities, as required. CoFR may also establish committees drawn from their respective member and associate agencies to address particular issues.
CoFR's main objectives are to:
- Share information on the strategic priorities of member agencies;
- Identify important issues and trends in the financial system that may impinge upon achievement of the agencies' regulatory objectives and where appropriate agree processes to address those issues;
- Ensure a coordinated response to issues that may require a cross-agency involvement and put in place appropriate mechanisms to achieve this;
- Ensure appropriate coordination arrangements are in place for responding to events or developments.
The existence of CoFR does not derogate from the existing statutory rights and responsibilities of the respective authorities. CoFR members may formalise their working relationship through appropriate mechanisms such as a Memorandum of Understanding.
Environmental Scan and Risk Dashboard
To meet its objectives CoFR regularly reviews the environment and risks to our financial markets and regulatory system. The following are examples of CoFR’s Environmental Scan and Risk Dashboard, which summarises the varied factors and key risk drivers in New Zealand’s financial system. These are point in time documents that are periodically updated.
CoFR has signed a regulatory charter that promotes good regulatory stewardship to monitor the performance and quality of the financial markets regulatory system. MBIE developed the charter as a management tool to set expectations and provide an overview of the regulatory system.