One regulator - all finance sector?

[donna]

Steven of CANNEX shares his thoughts on the NZ's decision to discuss a single prudent 'controller' for our finance sector....

read blog entry

Cheers,

Donna

[wildwest]

Regulation of non-bank financial institutions

I agree with Steven that regulation for NZ non-banks is prudent, and in my mind, long overdue.

It also seems sensible to leverage off all of the work done in the banking sector to apply a similar set of rules as most non-banks offer similar products.

I think the key is to ensure that the regulation protects the consumer, and provides for better business practice.

[roseneath_rat]

If you want a little more info on the same topic:

Co-regulation gets the nod from Cabinet
by Anthony Davies | Wednesday, 21 December 2005

Cabinet has given the green light to introducing a co-regulatory regime for financial advisers as recommended by the Financial Intermediaries Taskforce earlier this year.

The broad thrust of the Taskforce's recommendations were that approved professional bodies (APB) be responsible for the frontline regulation of advisers under the supervision of the Securities Commission. The Securities Commission as the statutory regulator will also be responsible for designating appropriate industry bodies as APBs.

With the green light from Cabinet, the Ministry of Economic Development officials can now begin to work on the details of the proposed regime's structure and mechanisms. They will report back in the second half of next year and legislation will be introduced into Parliament in early 2007.

The Taskforce’s recommendations have won broad support from all Parliamentary political parties as well as from, Commerce Minister Lianne Dalziel, the Ministry of Economic Development, the industry and consumer groups. Various industry associations such as the Financial Planners and Insurance Advisers Association, the Professional Advisors Association and the Life Brokers Association are currently holding talks to investigate forming an APB representing a range of financial intermediary groups.