Conduct of Financial Institutions Bill receives first reading
On Wednesday 12 February 2020, the Financial Markets (Conduct of Institutions) Amendment Bill (the Bill) received its first reading in Parliament.
The Bill (and the transcript of the first reading debate) are available online.
What was covered?
The Bill proposes to introduce a broad regime governing the conduct of registered banks, licensed insurers and licensed non-bank deposit takers. The Bill is being fast tracked to protect consumers and to maintain confidence.
During the first reading Hon Kris Faafoi, Minister of Commerce and Consumer Affairs, said:
“The ultimate aim of this new regime is to improve the conduct of financial institutions and to help rebuild trust and confidence in our financial sector. This will serve the needs and interests of everyday consumers and lift wellbeing across the board. This is particularly important and timely given the problems that have been occurring in the financial sector, and the various reviews that have taken place which led to the introduction of this bill.”
Based on the first reading debate, indications are that the Bill is supported by the member parties of the Coalition Government (Labour Party, New Zealand First, Green Party) but may be opposed by the Opposition.
The Finance and Expenditure Committee will consider the bill and is to report back by 23 June 2020.
If you have any questions on the bill, please contact one of our experts who would be happy to assist.