The New Zealand Reserve Bank has released a consultation paper on its review of the prudential regime for Non-Bank Deposit Takers (NBDTs) under Part 5D of the Reserve Bank of New Zealand Act.

Key parts of the consultation document include fine-tuning the definition of what constitutes an NBDT and ensuring the appropriate supervisory arrangements are in place for the sector. The paper also looks at the underlying objectives of the regime, as well as considering the prudential and disclosure requirements (which includes a discussion on potential changes required when the Financial Markets Conduct Bill comes into force), the offences and penalties in place for non-compliance, and crisis management powers.

RBNZ will prepare a report for the Minister of Finance on the outcomes of the review, which will then be tabled in Parliament.