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Financial Services Quarterly
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Review of non-bank finance sector and changes to credit union rules
The Government has also announced a review of how a number of non-bank financial products and providers are regulated. In the same announcement, the Minister of Commerce announced proposed changes to the legislation governing friendly societies and credit unions.
The next year or so will be an important period for finance companies and non-bank financial institutions in understanding, and having the opportunity to make submissions on, the direction of the Government's thinking. Bell Gully has established a team to focus on these developments and will be able to provide advice on what the changes mean for your business in practice.
The Government's review of non-bank financial products and providers will cover superannuation, insurance, managed fund products, and securities offerings, and the regulation of non-bank providers generally. Policy decisions on the review are expected in late 2006 with any changes to be effective in 2008.
The Minister of Commerce has also announced that changes to the legislation governing friendly societies and credit unions is expected later in 2005 in order to remove certain current restrictions. For instance, under the proposed changes, credit unions will be able to extend new services to their members. Other areas for change will be considered in the review of non-bank financial products and providers mentioned above.
The Minister said that "Credit unions and friendly societies play an important role in providing financial services to New Zealanders who do not have access to mainstream banking providers. The proposed changes, and those to be developed through the review, should give these institutions greater flexibility to grow and bolster their value to consumers and the wider market."
Enquiries and information
For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.
Disclaimer
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
