The Finance and Expenditure Select Committee's report on the Non-bank Deposit Takers Bill has been delayed and is now due to be reported to the House by 1 June 2012.
The primary purpose of this Bill is to implement the final components of the new regime for the prudential regulation of non-bank deposit takers (NBDTs), which arose out of the Government's 2005-06 Review of Financial Products and Providers. In 2007, the decision was taken to implement the regime in two stages. The first stage is in place by virtue of the Reserve Bank of New Zealand Amendment Act 2008 (now Part 5D of the Reserve Bank of New Zealand Act 1989). This introduced requirements in relation to credit ratings, governance, risk management, capital, related party exposures, and liquidity. This Bill covers the remaining elements of the regime. It incorporates all the existing prudential requirements in Part 5D, and imposes additional requirements including licensing, suitability assessments of directors and senior officers, and restrictions on changes in ownership, and gives the Reserve Bank increased powers to detect and manage NBDT distress and failure.
Written submissions made to the select committee on the Bill are available here.