Ministers meet regulators as banks, insurers asked for information

Commerce Minister Kris Faafoi says there has been no evidence of systemic problems in financial services in this country but it is appropriate that regulators review the sector.

Wednesday, May 30th 2018, 10:07AM

Finance Minister Grant Robertson and Commerce and Faafoi have met with the Reserve Bank of New Zealand and Financial Markets Authority to discuss their work examining the conduct and operations of the financial sector.

Banks and insurance companies have been asked to give details of the work they are doing to tackle potential conduct risks and address the issues highlighted by the Australian Royal Commission of Inquiry into misconduct in the banking, superannuation and financial services industry.

“Minister Faafoi and I told the RBNZ Governor and FMA chief executive that we are pleased they are undertaking this analysis of banks and financial service providers’ conduct and operations. We are watching the situation closely as New Zealanders needs continued reassurance that what we have seen uncovered in Australia does not happen here,” Robertson said.

“I am encouraged by the process they are undertaking in asking for assurances and evidence, and I reiterated that that this is a matter I regard to be of serious importance for New Zealanders. We have agreed to meet with the RBNZ and FMA on a regular basis as their work programme develops.”

“We have seen no evidence to date of the systemic problems that prompted the Australian inquiry but we are happy the FMA and RBNZ have a continuing programme of work,” Faafoi said.

“In addition to this work, the Government is taking initiatives to strengthen the legislative and regulatory environment in which banks and financial services providers work. This includes the Financial Services Legislation Amendment Bill, Insurance Contract Law Review and a Review of the Credit Contracts and Consumer Finance Act 2003 (CCCFA). All of these are designed to make conduct and practices more transparent and ensure protection for New Zealand consumers who are borrowing from banks and lenders,” Kris Faafoi said.

“I was pleased to hear about the RBNZ and FMA’s plans to inform Parliament’s Finance and Expenditure Committee about their understanding of the implications for New Zealand of the Australian Royal Commission and the work programme they are undertaking.”

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