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

26 April 2022 – Ho David Parker, Minister of Revenue, released a speech titled “Shining a light on unfairness in our tax system.” https://www.beehive.govt.nz/speech/shining-light-unfairness-our-tax-system

27 April 2022 – RBNZ published its responses to feedback received on its proposed policy for debt serviceability restrictions (DSRs) on residential mortgage lending. https://www.rbnz.govt.nz/news/2022/04/feedback-on-debt-servicing-restrictions-framework-informs-future-policy-direction


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 for the life and health insurance sector

22 March 2022 – Government announced its intention to introduce a Bill this year “to crackdown on global and domestic criminals who use businesses to hide money laundering, tax evasion and the financing of terrorism. It will include changes to the rules around beneficial owners to make it easier to see who owns or controls a company.”

https://www.beehive.govt.nz/release/govt-cracks-down-misuse-nz-companies

https://www.mbie.govt.nz/about/news/new-measures-will-combat-the-misuse-of-nz-companies/

22 March 2022 – The Privacy Commissioner confirmed Privacy Week this year is 9 - 15 May 2022 with a call for proposals and event ideas. The theme is Privacy: The Foundation of Trust. https://privacy.org.nz/news/forums-and-seminars/privacy-week/


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


Legal and regulatory review for the life and health insurance sector

3 March 2022 – APRA released life insurance statistics for December 2021. https://www.apra.gov.au/news-and-publications/apra-releases-life-insurance-statistics-for-december-2021

3 March 2022 – The Commission for Financial Capability announced a new programme helping 1200 Pacific households on their journey to home ownership. https://retirement.govt.nz/news/latest-news/new-pathways-for-pacific-home-ownership/

3 March 2022 – The Council of Financial Regulators posted online details of its meeting held on 1 March 2022, together with advice of release of an updated Regulatory Initiatives Calendar. https://www.cofr.govt.nz/

4 March 2022 – Financial Services Council launched its 2022 Financial Resilience Index. https://blog.fsc.org.nz/2022-research-financial-resilience-index

3 March 2022 - The Reserve Bank of New Zealand said  its latest survey underscores the need for deliberate changes to the cash system to keep it resilient and efficient while needed and wanted by New Zealanders. https://www.rbnz.govt.nz/news/2022/03/cash-system-redesign-essential-to-support-changing-usage

3 March 2022 - Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill reported back to Parliament from the Select Committee. 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


Legal and regulatory update for the life and health insurance sector

23-24 Nov 2021 – Parliament completed all stages under urgency of the following two Bills with implications for many businesses, only requiring Royal Assent to become law.

  • COVID-19 Response (Vaccinations) Legislation Bill

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_117923/covid-19-response-vaccinations-legislation-bill

  • Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Bill

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_117924/taxation-covid-19-support-payments-and-working-for-families


Legal and regulatory update for the life and health insurance sector

15 Oct 2021 – IRD released a consultation on reporting requirements for domestic trusts, with submissions closing on 15 Nov 2021. https://taxpolicy.ird.govt.nz/publications/2021/2021-ip-reporting-requirements-domestic-trusts

18 Oct 2021 – RBNZ announced webinars on its Future of Money issues papers, as follows:

  • Future of Money – Stewardship
    • Thurs, 28 Oct, 2-3pm
    • Tues, 2 Nov, 7-8pm
  • Future of Money – Central Bank Digital Currency
    • Thurs, 28 Oct, 7-8pm
    • Tues, 2 Nov, 2-3pm

https://www.surveymonkey.com/r/Future-of-money-webinars


Legal and regulatory update for the life and health insurance sector

12 Oct 2021 – The FMA released advice that the Ministry of Justice commenced a statutorily required review of the AML/CFT Act on 6 Oct 2021, with the MOJ releasing a consultation document with submissions closing on 3 Dec 2021. https://consultations.justice.govt.nz/policy/aml-cft-review/

12 Oct 2021 – IRD released a commentary on the Supplementary Order Paper No. 64 to the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill, containing proposals aimed at limiting the deductibility of interest incurred for residential property investments. https://taxpolicy.ird.govt.nz/publications/2021/2021-commentary-sop-argrm-bill

13 Oct 2021- FMA issued guidance on the advertising of financial products. https://www.fma.govt.nz/news-and-resources/media-releases/fma-issues-guidance-on-advertising-of-financial-products

13 Oct 2021 – RBNZ issued a consultation seeking views on its enforcement framework with submissions closing on 24 November 2021. https://www.rbnz.govt.nz/news/2021/10/views-sought-on-enforcement-framework

13 Oct 2021 - 13 Oct 2021 – MBIE advised that the Minister of Commerce and Consumer Affairs has issued the Updated Addendum to the Responsible Lending Code: COVID-19. The addendum elaborates on and offer guidance on how lender responsibility principles and lender responsibilities may be implemented by lenders while dealing with borrowers who have been impacted by COVID-19. https://www.mbie.govt.nz/dmsdocument/17505-updated-addendum-to-the-responsible-lending-code-covid-19

 

 


Legal and regulatory review for the life and health insurance sector

28 Sept 2021 – FMA released its KiwiSaver Annual Report for the period ending 31 March 2021. https://www.fma.govt.nz/news-and-resources/media-releases/kiwisaver-reaches-81-billion/

28 Sept 2021 - The Government released the draft legislation outlining the details of the policy limiting the right to deduct interest costs on residential property investments.

https://www.beehive.govt.nz/release/details-interest-deductibility-rules-released

https://taxpolicy.ird.govt.nz/news/2021/2021-09-28-interest-limitation-proposals