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Legal and regulatory update: several big updates including the latest on conduct law changes

As parliament winds down this week, the last three days have seen a number of regulatory releases, many with potentially significant implications. A list follows, together with relevant links. Probably the most important is the conduct Bill update, which is the last item below. 

4 Aug 2020 – Following completion of the AMP Life sale in June, RBNZ released a document outlining the structure of the new operating model, key elements of the new structure, and exemptions and conditions applied to it. https://www.rbnz.govt.nz/regulation-and-supervision/insurers/regulation/amp-life-sale

4 Aug 2020 – Financial Markets Infrastructure Bill reported back from the Parliamentary Select Committee. https://www.parliament.nz/en/pb/sc/reports/document/SCR_99780/financial-market-infrastructures-bill

5 Aug 2020 – Commerce Commission released two reviews into an October 2019 security incident and accepts all findings and recommendations. The security incident arose from the theft of computer equipment belonging to one of the Commission’s external providers in a burglary and, as such, may contain lessons for commercial enterprises more generally on managing and mitigating such risks. https://comcom.govt.nz/about-us/strategic-planning-and-accountability-reporting/security-incident-october-2019

5 Aug 2020 – MBIE commenced consultation on the options for establishing a consumer data right in New Zealand. A consumer data right would give individuals and businesses greater choice and control over the data held about them by businesses such as banks or utility providers. It also allows individuals and businesses to securely share data held about them with a trusted third party. Submissions close on 5 Oct 2020. https://www.mbie.govt.nz/have-your-say/options-for-establishing-a-consumer-data-right-in-new-zealand/

6 Aug 2020 – MBIE released an update on development of the CCCFA regulations, advising that the regulations have now been split into two tranches with the first tranche to be made before the election and the second tranche to follow later this year. The first tranche of regulations relates to:

  • responsible advertising standards for lenders
  • the information to be disclosed at the start of debt collection
  • disclosure requirements when a contract has been varied
  • amendments to existing regulations relating to disclosure of information about dispute resolution services and financial mentoring services.

The remaining regulations relating to affordability and suitability assessments will be finalised over the coming months. The intention is for these to be made soon after a new government is formed. Both tranches of regulations, and most of the remaining provisions of the Credit Contracts Legislation Amendment Act will come into force on 1 October 2021. However, the provisions which enable the Commerce Commission to receive applications for certification will commence in June 2021.

6 Aug 2020 – The FMA released the results of a survey of KiwiSaver members relating to member recall of sighting the inclusion of projected retirement lump sum in annual statements for the first time and the proportion of members thereof taking some additional action. https://www.fma.govt.nz/news-and-resources/media-releases/kiwisaver-statements-members-take-action/

6 Aug 2020 – Parliament went into recess ahead of the election.

6 Aug 2020 – MBIE advised of a short consultation, closing on 12 Aug 2020, seeking views as to whether the Addendum to the Responsible Lending Code related to Covid-19 and due to expire on 30 Nov 2020, should be extended. The RBNZ is also considering whether its Covid-19 related guidance to facilitate banks offering loan deferrals, due to expire on 27 Sept 2020, should similarly be extended.

7 Aug 2020 – The Financial Markets (Conduct of Institutions) Amendment Bill was reported back from the Select Committee. The final report can be accessed at https://www.parliament.nz/en/pb/sc/reports/document/SCR_99944/financial-markets-conduct-of-institutions-amendment-bill

You can read the revised draft law and the explanatory notes from MBIE in the documents below. 

Download Final-report-Financial-Markets-Conduct-of-Institutions-Amendment-Bill-203-2

Download Explanatory note for industry - Changes made to FMCoIA Bill at Select Committee

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