Sunday 15th May 2005
|Text too small?|
The aim of the review is to improve the efficiency of financial markets by ensuring that there is a consistent and effective framework for the regulation of products and providers.
The review will comprise an assessment of the current regulation of: superannuation, insurance, managed fund products, and securities offerings. It will also look at the regulation of non-bank providers such as insurance companies, credit unions, friendly societies, building societies, finance companies and industrial and provident societies.
Commerce minister Pete Hodgson says "it will seek to identify areas where existing arrangements could be improved. The review consolidates a number of separate reviews already planned or being carried out.
"It will build on the work of the Financial Intermediaries task force and consider the recommendations of the Law Commission report on life insurance.
"Effective regulation is key to maintaining confidence in, and promoting, a sound and efficient financial sector. Providers, products, services, markets and the needs of consumers change over time and it is important that the regulatory environment evolves to accommodate that change. This review is designed to help ensure that the regulatory environment remains robust and responsive to the market's needs," he says.
The review will also look at how New Zealand's non-bank regulation takes account of international developments and any appropriate coordination opportunities with Australia.
The Ministry of Economic Development will lead the review, taking an open and consultative approach and encouraging participation by the financial sector.
Treasury will lead concurrent work on the how the regulatory regime can best be administered, including whether any changes to the existing domestic regulatory bodies are needed.
Policy decisions on the review are anticipated towards the end of 2006 with any changes implemented through legislation in 2008.
No comments yet
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes
NZ dollar gains as dovish Fed comments point to 50-bps US cut
19th July 2019 Morning Report
RBNZ says no change in approach on Resolution Life's AMP purchase
MARKET CLOSE: NZX50 hits record as yield stocks remain in vogue
NZ dollar mixed after strong Australian employment data
Energy efficiency key to lowering cost of renewables push - EECA
Paper recycling costs rising 35% as export markets collapse