Last week I really enjoyed meeting the Chief Executives from New Zealand’s Non-Bank Deposit Taker sector, who represent Building Societies, Credit Unions and Deposit-Taking Finance Companies. This session, in Auckland, was followed by my colleagues Michael Hewes and Brett Huntley heading to New Plymouth to meet the Board of TSB, as well as catching up with some of the Financial Advice Providers who call Taranaki home.
These meetings happened as the FMA prepares for the Conduct of Financial Institutions regime to start in March next year. The regime, which introduces conduct regulation for banks, insurers and non-bank deposit takers, reflects concerns that emerged on both sides of the Tasman about financial sector conduct in 2017 and 2018.
The FMA has been working with smaller providers to ensure they have all the help they need in order to gain a CoFI licence. In June this year, the FMA provided an information sheet for smaller firms to ensure they had everything they needed. Further support has been offered through the year directly by FMA staff.
At the roundtable in Auckland, we discussed the impact of CoFI requirements, the importance of proportionality and the importance of engagement to foster trust and innovation. There was an open discussion around the operational constraints they operate under, and the need for tailored oversight to support their resilience, competition and growth.
I’m committed to supporting a resilient non-bank deposit taking sector, while ensuring high standards of integrity and consumer protection. I’d like to thank all those CEs for coming in to talk to us about their businesses, their challenges and opportunities. Michael and his team’s trip to New Plymouth also highlights the importance to us of FMA staff hitting the road to fully understand all the financial services businesses who call Aotearoa home.
