29 May 2018

Ministers meet bank and insurance regulators

Hon Grant Robertson and Hon Kris Faafoi
29 May 2018

Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister Kris Faafoi have met with the Reserve Bank of New Zealand (RBNZ) and Financial Markets Authority (FMA) to discuss their previously announced review of the conduct and operations of the financial sector.

“Minister Faafoi and I told the RBNZ Governor and FMA CEO 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.” Grant 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,” Grant Robertson said.

“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,” Kris 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.”

Note to Editors:
The RBNZ and FMA will appear before Parliament’s Finance and Expenditure Committee at 2pm on Wednesday. RBNZ Governor Adrian Orr and FMA chief executive Rob Everett will brief the committee on the Australian Royal Commission into Misconduct in Banking, Superannuation and Financial Services Industry.