Legal and regulatory

27 Sept 2021 – Several regulatory releases related to financial services published as follows:

  • KiwiSaver (Reallocation and Transfer of Default Members) Regulations 2021
  • Financial Markets Conduct (Communal Facilities in Real Property Developments) Exemption Notice 2021
  • Financial Service Providers (End of Transitional Period) Order 2021 (relevant to overseas financial service providers with New Zealand retail clients above a minimum threshold)
  • Credit Contracts and Consumer Finance (Exemptions, Annual Returns, and Other Matters) Amendment Regulations 2021

4 Oct 2021 – NZ Police Financial Intelligence Unit released its August 2021 Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-aug2021.pdf

4 Oct 2021 – RBNZ released its Annual Report. https://www.rbnz.govt.nz/news/2021/10/maintaining-focus-on-economic-wellbeing-and-prosperity

4 Oct 2021 – FMA media release, as part of World Investor Week (4-10 October), urging DIY online investors to pause before succumbing to investment FOMO. https://www.fma.govt.nz/news-and-resources/media-releases/diy-investors-encouraged-to-take-a-mo-before-giving-in-to-fomo/


Legal and regulatory update for the life and health insurance sector

8 Sept 2021 – NZ Police Financial Intelligence Unit published the July Suspicious Transaction Report together with a survey seeking feedback on the Suspicious Transaction Report. https://www.police.govt.nz/advice-services/businesses-and-organisations/nz-financial-intelligence-unit-fiu/fiu-reports

8 Sept 2021 – The Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill was introduced into Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_115767/taxation-annual-rates-for-2021-22-gst-and-remedial-matters

8 Sept 2021 – RBNZ released the results of its thematic review of bank liquidity, which identified areas for improvement. RBNZ also advised that it intends to commence a review of the liquidity policy in the first half of 2022. https://www.rbnz.govt.nz/news/2021/09/thematic-review-of-bank-liquidity-identifies-areas-for-improvement


Legal and regulatory update for the life and health insurance sector

30 June 2021 – FMA published its NZX obligations annual review. https://www.fma.govt.nz/news-and-resources/media-releases/nzx-obligations-review-2021

1 July 2021 - Department of Internal Affairs published a new AML/CFT guideline for reporting entities supervised by the DIA to assist them assess the money laundering and terrorism financing risks associated with dealing with other countries. https://www.dia.govt.nz/AML-CFT-Assessing-Country-Risk-Guideline-for-reporting-entities-supervised-by-DIA-published

5 July 2021 – NZ Police Financial Intelligence Unit released the May 2021 AML/CFT Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-may2021.pdf

 


Legal and regulatory review for the life and health insurance sector

30 Apr 2021 - The Council for Financial Regulators (CoFR) agreed on a common understanding of the characteristics of a vulnerable consumer. This is presented as a non-binding framework for industry when developing or reviewing the way it treats vulnerable customers. https://www.rbnz.govt.nz/-/media/ReserveBank/Files/regulation-and-supervision/banks/relationships/cofr/CoFR-Consumer-Vulnerability-Framework.pdf

3 May 2021 – The NZ Police Financial Intelligence Unit released the March 2021 Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-mar2021.pdf


Legal and regulatory review for the life and health insurance sector

29 Mar 2021 – IRD released via an e-mail an AEOI update to the CRS Reportable and Participating Jurisdictions showing additions, with New Caledonia added to Reportable Jurisdictions and Albania, New Caledonia, Nigeria, Peru and Turkey added to Participating Jurisdictions.

29 Mar 2021 – Police Financial Intelligence Unit released the February 2021 Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-feb2021.pdf

29 Mar 2021 - Protected Disclosures (Protection of Whistleblowers) Bill reported back from Select Committee. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_99238/protected-disclosures-protection-of-whistleblowers-bill

Financial Markets Conduct (US Futures Commission Merchants) Exemption Notice 2021. The exemption notice temporarily extends exemptions currently in place for US registered futures commission merchants that are accredited NZX derivatives participants with the notice expiring on 3 December 2021. https://www.fma.govt.nz/compliance/exemptions/current-exemption-notices/financial-markets-conduct-act-exemptions/financial-markets-conduct-us-futures-commission-merchants-exemption-notice-2021/

24 Mar 2021 – RBNZ announced that it had made a number of amendment orders to revise the requirements for banks’ published disclosure statements. https://www.rbnz.govt.nz/regulation-and-supervision/banks/consultations-and-policy-initiatives/completed-policy-development/public-disclosure-of-bank-breaches

25 Mar 2021 – FMA updated and closed the consultation on the content of regulatory returns for licensed DI, MIS managers and DIMS providers, including a “response to submissions” document and release of regulatory returns data templates. https://www.fma.govt.nz/compliance/consultation/consultation-paper-content-of-regulatory-returns-for-licensed-di-mis-managers-and-dims-providers/

29 Mar 2021 - NZX gave notice of amendments to the NZX Derivatives Market Rules (Rules) pursuant to Rule 1.6. The amendments to the Rules were approved by the Financial Markets Authority on 15 February 2021, following consultation with the market in April 2020. These amendments involve updates to bring the Rules in conformance with the 2019 amendments to the NZX Participant Rules. https://www.nzx.com/announcements/369841

29 Mar 2021 – RBNZ advised that it had submitted a response to the Climate Change Commission’s Climate Action for Aotearoa consultation. https://www.rbnz.govt.nz/news/2021/03/reserve-bank-responds-to-call-for-climate-change-consultation


Legal and regulatory update for the life and health insurance sector

22 Feb 2021 - KiwiSaver (Life-shortening Congenital Conditions) Amendment Regulations 2021 (‘Regulations’) were released, coming into force on 26 March 2021. This is an important component of planning life risk - especially as KiwiSaver balances rise. It isn't quite the predictable model for early withdrawals we would have liked, but valuable for those it does cover, enabling some access to funds where a person's life expectancy is going to be shortened due to our of the listed conditions.  https://www.legislation.govt.nz/regulation/public/2021/0025/latest/LMS449982.html

1 Mar 2021 - The Minister of Revenue indicated an intention to introduce legislation to relax New Zealand’s loss continuity rules to allow businesses better access to capital via a supplementary order paper to the Taxation (Annual Rates for 2020-21, Feasibility Expenditure, and Remedial Matters) Bill later in March. https://taxpolicy.ird.govt.nz/news/2021/2021-03-01-introduction-new-business-continuity-test-tax-losses

1 Mar 2021 – IRD FATCA email update covered:

  • S. IRS announced voluntary changes to the FATCA schema for reporting of missing US TINs with application to this coming 2021 FATCA reporting period ended 31 March 2021; and
  • A general reminder to New Zealand Financial Institutions ("NZFIs") about the (aggregated) account balance reporting thresholds that apply to whether a person’s financial accounts are reportable. 

2 March 2021 – IRD sought feedback on 10 proposed remedial changes to the foreign trust disclosure rules, which were enacted in the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017. Submissions close on 23 March 2021. https://taxpolicy.ird.govt.nz/news/2021/2021-03-02-feedback-sought-foreign-trust-remedials

Feb 2021 - Insurance (Prudential Supervision) Act 2010 (IPSA) RBNZ Review – New submission closing date set of 19 March 2021.

1 March 2021 – NZ Police Financial Intelligence Unit released its Dec 2020-Jan 2021 “Suspicious Activity Report.” https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-dec2020-jan2021.pdf


Legal and regulatory review for the life and health insurance sector

16 Oct 2020 – Privacy Commissioner website provided details for the next PrivacyLive Forum to be held during Privacy Week on 5 November 2020, with the presentation focused upon the Privacy Act 2020, due to come into effect on 1 Dec 2020. https://www.privacy.org.nz/resources-2/forums-and-seminars/privacy-live-our-speaker-series/

19 Oct 2020 – FIU released the monthly AML/CFT September 2020 Suspicious Activity Report including, for example, a link to the FATF September 2020 report titled “Virtual Assets Red Flag Indicators”. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-sep-2020.pdf