The Government is introducing further legislation to tighten the
rules for non-bank deposit takers (NBDTs) in an attempt to lift
investor confidence in financial institutions.
The primary purpose of the Non-Bank Deposit Takers Bill is to
implement the final components of the new regime for the prudential
regulation of non-bank deposit takers (NBDTs).The
bill introduces licensing requirements and strengthens the Reserve
Bank's powers and will be introduced to Parliament next
The bill will impose additional requirements including
licensing, suitability assessments of directors and senior
officers, and restrictions on changes in ownership. It will give
the Reserve Bank increased powers to detect and manage NBDT
distress and failure.
"This is part of a suite of measures designed to lift
investor confidence in our finance sector and capital markets -
we've established the Financial Markets Authority, put in place
a new regime for financial advisers, required licensing of trustees
and auditors and strengthened disclosure requirements,"
Finance Minister Bill English says.
"We've also outlined our plans to extend the mixed
ownership model to some state-owned enterprises to further lift
confidence and invigorate our markets by providing fresh
opportunities for Kiwi investors," Mr English says.
The bill is expected to become fully effective on 1 June 2013,
after a one-year transition period to enable existing NBDTs to meet
the new licensing rules.
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