Legal and regulatory update for the life and health insurance sector

19 May 2022 – Takeovers Panel issued updated Guidance on Schemes of Arrangement and also issued comment on “Deal Protection Devices”. https://www.takeovers.govt.nz/

19 May 2022 – IRD advised of the introduction into Parliament of the Taxation (Cost of Living Payments) Bill and the Bill was passed through all Parliamentary stages under urgency in an extended Parliamentary session.

https://www.taxpolicy.ird.govt.nz/news/2022/2022-05-19-tax-bill-introduced

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_123884/taxation-cost-of-living-payments-bill

19 May 2022 - Companies Office Registers Funding Validation Bill introduced to Parliament to amend 13 different Acts to retrospectively validate fees that have been collected under those Acts that have been, or will be applied under any register administered by the New Zealand Companies Office. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_123888/companies-office-registers-funding-validation-bill

19 May 2022 – The Ministry of Business, Innovation and Employment (MBIE) reported that the Government has agreed through Budget 2022 to increase the Financial Market Authority (FMA) annual operating funding from $60.805 million to $76.401 million in 2025/26. As part of the new funding arrangement, the Government has agreed to set new industry levies following consultation last year. The levy increase will be phased in over 4 years to minimise the burden on the financial sector. The levies have also been apportioned by entity size and type, to ensure smaller entities are not unduly burdened with high costs. Currently, the majority of the FMA’s funding is recovered from market participants through the FMA levy (83%), with the Crown contributing the remaining 17%. The proportion of the Crown’s contribution is decreasing slightly to 16% from 2025/26. Through Budget 2022, the Government has agreed to contribute all capital funding and some operational funding for CoFI and CRD towards the FMA, which will provide some cost relief to entities. While MBIE and the FMA also consulted on funding requirements for the Insurance Contract Law (ICL) regime, decisions about funding for this regime will be made at a later date. Any levies for this regime will take effect after the Insurance Contracts Bill has been passed by Parliament. https://www.mbie.govt.nz/about/news/government-to-increase-fmas-funding-and-set-new-levies/

20 May 2022 – Under an extended Parliamentary session from 19 May 2022, the Income Insurance Scheme (Enabling Development) Bill was read a first time, with the Second Reading continuing while writing this. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_123885/income-insurance-scheme-enabling-development-bill


Legal and regulatory update for the life and health insurance sector

10 May 2022 – Government announced further Russian sanctions targeting disinformation and those responsible for cyber-attacks on Ukraine.

https://www.beehive.govt.nz/release/new-sanctions-target-disinformation-and-malicious-cyber-actors

https://www.mfat.govt.nz/en/countries-and-regions/europe/ukraine/russian-invasion-of-ukraine/sanctions

10 May 2022 – Third reading of the Protected Disclosures (Protection of Whistleblowers) Bill completed in Parliament, with the Ombudsman issuing a statement welcoming its passage.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_99238/protected-disclosures-protection-of-whistleblowers-bill

https://www.beehive.govt.nz/release/government-bolsters-protection-whistleblowers

https://www.ombudsman.parliament.nz/news/ombudsman-welcomes-passage-protected-disclosures-bill

10 May 2022 Committee stage of the Retail Payment System Bill completed in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116198/retail-payment-system-bill

11 May 2022 – Ministry of Business, Innovation and Employment released a consultation on a Draft Long-term Insights Briefing on the future of business for Aotearoa New Zealand, with submissions closing on 24 June 2022. The focus is on an exploration of 2 trends influencing productivity and wellbeing – purpose-led business and use of blockchain technology. https://www.mbie.govt.nz/have-your-say/draft-long-term-insights-briefing-on-the-future-of-business-for-aotearoa-new-zealand/

11 May 2022 – Third Reading of the Retail Payment System Bill completed in Parliament.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116198/retail-payment-system-bill

https://www.beehive.govt.nz/release/lower-card-fees-way-business-consumers

https://www.mbie.govt.nz/about/news/consumers-and-businesses-to-benefit-from-lower-payment-processing-fees/


Legal and regulatory update for the life and health insurance sector

5 May 2022 – NZ Police Financial Intelligence Unit released The Suspicious Activity Report related to AML for March 2022. https://www.police.govt.nz/advice-services/businesses-and-organisations/nz-financial-intelligence-unit-fiu/fiu-reports

5 May 2022 – RBNZ advised of new data to be included in the Reserve Bank’s Tara-ā-Whare Household Inflation Expectations Survey, (M13), which will be available from 19 May. https://www.rbnz.govt.nz/statistics/m13

5 May 2022 – Financial Services Council released KiwiSaver industry statistics from the March quarter 2022. https://blog.fsc.org.nz/kiwisaver-spotlight-march-2022

5 May 2022 – IRD issued a consultation on whether and how New Zealand should participate in an OECD/G20 tax measure aimed at base erosion and profit shifting by large multinational enterprises. Submissions close on 1 July 2022. https://www.taxpolicy.ird.govt.nz/news/2022/2022-05-05-oecd-pillar-two-consultation


Legal and regulatory update for the life and health insurance sector

28 April 2022 – IRD issued a special report on FDR foreign currency hedges with changes arising from the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 enacted on 30 March 2022. https://www.taxpolicy.ird.govt.nz/news/2022/2022-04-28-fdr-fx-special-report

28 April 2022 – FMA published under FMA Stories a Q&A session with FMA’s Tammy Peyper talking about investing and what to do when markets get rocky. https://www.fma.govt.nz/news-and-resources/fma-stories/q-and-a-with-the-financial-markets-authoritys-tammy-peyper/

28 April 2022 – RBNZ Deputy Governor and General Manager Financial Stability delivered a speech on New Zealand’s Experience with Macroprudential Policy. https://www.rbnz.govt.nz/news/2022/04/our-evolving-view-of-macroprudential-policy

29 April 2022 – RBNZ media release noting strong public interest in the Future of Money following recent RBNZ consultations on the topic. https://www.rbnz.govt.nz/news/2022/04/reserve-bank-pleased-with-strong-public-interest-in-the-future-of-money


Legal and regulator update for the life and health insurance sector

4 April 2022 - Minister of Commerce and Consumer Affairs, Hon David Clark, January and February 2022 diary released with the following potential financial services sector related meetings noted:

  • 2 Feb 2022 – ASB (Vittoria Short, CEO; Craig Sims, Executive GM; Debbie Mills, Tribe Lead Home Ownership & Louise Griffin GM Govt Relations)
  • 2 Feb 2022 – Kiwibank (Steve Jurkovich, CEO; Liz Knight (CRO); & Mike Hendriksen (CLO))
  • 2 Feb 2022 – BNZ (Dan Huggins, CEO; Sam Perkins, Chief Risk Officer; Martin Elliott, GM Consumer Product Lending Domain; Dean Schmidt, Exec, Commercial Services and Responsible Business; Paul Hay, GM, Regulatory Affairs; Dirk McLeish, GM, Line 1 Control and Assurance)
  • 2 Feb 2022 – Westpac (Catherine McGrath, CEO, Westpac; Clayton Cosgrove)
  • 2 Feb 2022 – ANZ (Antonia Watson, CEO; Peter Parussini, GM Public, Consumer and Govt Affairs; Ben Kelleher – MD, Personal Banking; Cushla Scholfield,  Associate General Counsel; Andrew Gaukrodger  - Govt Relations & Corporate Responsibility)
  • 9 Feb 2022 – IAG (Bryce Davies, Corp Relations and Amanda Whiting, CEO)
  • 9 Feb 2022 – Financial Advice NZ (Heather Roy, Chair and Katrina Shanks, CEO, and John Bolton, Director)
  • 10 Feb 2022 – FinCap (Ruth Smithers, CE)
  • 17 Feb 2022 – Speech to FSC Future Ready Advice Summit

https://www.beehive.govt.nz/minister/hon-dr-david-clark

4 April 2022 – Government announced a new round of sanctions announced targeting Russian oligarchs. https://www.beehive.govt.nz/release/new-round-sanctions-announced-targeting-russian-oligarchs

5 April 2022 – Parliament completed the first reading of the Fair Pay Agreements Bill, referred to the Education and Workforce Select Committee with report back due by 5 Oct 2022.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_121328/fair-pay-agreements-bill

https://www.beehive.govt.nz/release/everyday-workers-take-centre-stage-fpas-bill-passes-first-reading

6 April 2022 – IRD advised that a new FATCA Excel file template is now available for download via myIR.

6 April 2022 – Commission for Financial Capability released data about KiwiSaver balances across age groups and gender, with the data collected by Melville Jessup Weaver actuaries on behalf of the Commission. https://retirement.govt.nz/news/latest-news/new-data-reveals-for-the-first-time-largest-breakdown-of-kiwisaver-balances-across-all-ages-and-genders/

6 April 2022 – Privacy Commissioner invited submissions on a proposal to amend the Health Information Privacy Code 2020 to align it to the Pae Ora (Healthy Futures) Bill, with submissions closing on 4 May 2022. https://privacy.org.nz/publications/statements-media-releases/submissions-invited-on-proposal-to-amend-the-health-information-privacy-code-2020-to-align-it-to-the-pae-ora-healthy-futures-bill/


Legal and regulatory update for the life and health insurance sector

AML/CFT review submissions have been reviewed and a summary released

https://consultations.justice.govt.nz/policy/aml-cft-review/

The Government is reviewing the Search and Surveillance Act 2012 with targeted engagement being carried out during the first part of 2022 to be followed by wider public engagement later in the year

https://www.justice.govt.nz/about/news-and-media/news/review-of-the-search-and-surveillance-act-2012/

Review of a national framework to improve access to civil justice with submissions closing on 30 June 2022.

https://www.justice.govt.nz/about/news-and-media/news/have-your-say-on-a-national-framework-to-improve-access-to-civil-justice-wayfinding-for-civil-justice/

29 March 2022 – NZ Parliament completed the third reading of the Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill and introduced the Fair Pay Agreements Bill.

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

https://www.taxpolicy.ird.govt.nz/news/2022/2022-03-30-tax-bill-passed

https://www.taxpolicy.ird.govt.nz/news/2022/2022-03-31-special-reports-new-legislation

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_121328/fair-pay-agreements-bill

31 March 2022 – The Incorporated Societies Bill completed third reading in Parliament.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109429/incorporated-societies-bill

https://www.beehive.govt.nz/release/incorporated-societies-act-updated-first-time-1908

https://www.mbie.govt.nz/about/news/greater-clarity-and-protection-for-incorporated-societies-passes-into-law/

31 March 2022 – The International Financial Reporting Standards (IFRS) Board advised that the International Sustainability Standards Board (ISSB) had delivered proposals that create comprehensive global baseline of sustainability disclosures. The ISSB communicated plans for building upon the Sustainability Accounting Standards Board (SASB) Standards and for embedding SASB’s industry-based standards development approach into the ISSB’s standards development process.

https://www.ifrs.org/news-and-events/news/2022/03/issb-delivers-proposals-that-create-comprehensive-global-baseline-of-sustainability-disclosures/

https://www.ifrs.org/news-and-events/news/2022/03/issb-communicates-plans-to-build-on-sasbs-industry-based-standards/

 


Legal and regulatory update

16 March 2022 - The RBNZ advised that it is seeking feedback on policy options for mutual banks to issue capital instruments, with submissions closing on 10 June 2022. https://www.rbnz.govt.nz/news/2022/03/capital-instruments-for-mutual-banks-being-considered

16 March 2022 – IRD released a government consultation on top tax rate avoidance prevention proposals, with submissions closing on 29 April 2022. https://www.taxpolicy.ird.govt.nz/publications/2022/2022-dd-dividend-integrity-psa


Legal and regulatory update for the life and health insurance sector

4 March 2022 – The international Financial Action Task Force adopted amendments to Recommendation 24 and its Interpretive Note which require countries to prevent the misuse of legal persons for money laundering or terrorist financing and to ensure that there is adequate, accurate and up-to-date information on the beneficial ownership and control of legal persons. https://www.fatf-gafi.org/publications/fatfrecommendations/documents/r24-statement-march-2022.html

11 March 2022 – IRD issued advice that the Tax Administration (Financial Statements—Domestic Trusts) Order 2022 was made on 7 March 2022, setting minimum standards for financial statements prepared by trusts subject to the new disclosure rules. https://taxpolicy.ird.govt.nz/publications/2022/2022-sr-domestic-trusts-reporting-standards


Legal and regulatory update for the life and health insurance sector

10 March 2022 – The Financial Services Council released a Locum Guide for Financial Advice Providers. https://blog.fsc.org.nz/locum-financial-advice-arrangements?hsLang=en

10 March 2022 – IRD released a consultation titled, “The role of digital platforms in the taxation of the gig and sharing economy,” with submissions closing on 21 April 2022. https://www.taxpolicy.ird.govt.nz/news/2022/2022-03-10-consultation-gig-sharing-economy

10 March 2022 - Initial proposed changes to lending requirements under the Credit Contracts and Consumer Finance Act were announced by Government.

https://www.mbie.govt.nz/about/news/govt-proposes-initial-changes-to-lending-requirements/

https://www.beehive.govt.nz/release/govt-updates-responsible-lending-rules

3 March 2022 - The Council of Financial Regulators, published its updated Regulatory Initiatives Calendar Regulatory Initiatives Calendar (cofr.govt.nz). The media release is available https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-march-2022.html.


Legal and regulatory update for the life and health insurance sector

8 March 2022 – Daily Progress report on Bills in Parliament on this day indicates as follows:

  • The Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill was read a second time.
  • The Statutes Amendment Bill was read a first time and referred to the Governance and Administration Committee with report back due on 22 Sept 2022.
  • The Retail Payment System Bill was reported back from Select Committee.
  • The committee stage of the Commerce Amendment Bill was completed.
  • The committee stage of the Protected Disclosures (Protection of Whistleblowers) Bill was completed.
  • The committee stage of the Incorporated Societies Bill was completed.

https://www.parliament.nz/en/pb/daily-progress-in-the-house/daily-progress-for-tuesday-8-march-2022/

8 March 2022 – IRD issued a consultation on GST apportionment and adjustment rules with submissions closing on 27 April 2022. https://www.taxpolicy.ird.govt.nz/news/2022/2022-03-08-consultation-gst-apportionment

9 March 2022 – RBNZ published its feedback to responses received on the draft interim solvency standard for insurers, which determines the minimum amounts of capital that insurers must hold. https://www.rbnz.govt.nz/news/2022/03/interim-insurance-solvency-standard-refined-by-feedback