Regulatory developments

Crisis management powers for systemically important FMIs

In March 2016, the Reserve Bank issued a consultation paper on proposed crisis management powers for systemically important financial market infrastructures (SIFMIs). Submissions close on 20 May 2016.

The proposed crisis management powers form the final part of proposals that the Bank announced in December 2015 for a new oversight regime for designated FMIs.

The proposed crisis management regime has two parts. First, SIFMIs would be required to maintain business continuity plans, and recovery and orderly wind-down plans. Second, the Reserve Bank and the FMA (joint regulators) could call on proposed new statutory powers when these plans are inadequate to manage a crisis.

Read the March 2016 consultation paper (PDF 339KB)

Oversight of Designated Financial Market Infrastructures: summary of submissions and final policy proposals

In December 2015, the Reserve Bank released a summary of the submission feedback it received on its consultation on a proposed new regulatory framework for designated Financial Market Infrastructures (FMIs), its responses to the feedback and its final policy proposals. The Bank plans to conduct a limited scope consultation on the crisis management framework for FMIs in early 2016.

Read the summary of submissions and final policy proposals on oversight of designated FMIs (PDF 285KB)

Read the April 2015 consultation paper (PDF 368KB)

Changes to NZClear ownership and operation

In June 2015, the Reserve Bank called for expressions of interest for NZClear from potential buyers and operators. NZClear is a designated securities settlement and depository system. The FMA and the Reserve Bank's Prudential Supervision department (the ‘joint regulators') regulate NZClear.

The joint regulators issued a statement in June 2015 setting out their regulatory expectations concerning prospective changes to the ownership and operation of NZClear.

Read the NZClear Expressions of Interest news release

Read the joint regulators' statement (PDF 62KB)

Consultation on oversight of designated FMIs

In April 2015, the Reserve Bank issued a consultation paper on its proposals to modify the statutory framework for the oversight of FMIs. Submissions closed 3 July 2015. The paper proposed that the designation regime be modified to better support the Reserve Bank's risk-based supervisory approach, in particular, that:

  • There be mandatory designation of FMIs that are considered systemically important;
  • The joint regulators have crisis management powers for designated FMIs;
  • The joint regulators have a more graduated set of business-as-usual oversight powers, including enforcement and investigation powers for designated FMIs.

This followed an earlier consultation in 2013 and period of re-assessment, which included ongoing stakeholder engagement and information gathering.

Read the April 2015 consultation paper (PDF 368KB)

Summary of submissions to statutory payment oversight powers consultation

In October 2013, the Reserve Bank released a summary of, and its responses to, submissions received following its public consultation on the framework for strengthening its payment oversight powers.

Read the summary of submissions and the Reserve Bank's responses to them (PDF 141KB)

Strengthening the Reserve Bank's statutory payment oversight powers

In March 2013, the Reserve Bank consulted on proposals to strengthen its statutory payment oversight powers. The Bank proposed establishing a new legislative framework for the oversight of systemically important payment and settlement systems, which included:

  • Formally recognising systems that are systemically important;
  • Giving the Reserve Bank formal powers to oversee the recognised systems, such as powers to impose conditions and to direct;
  • Setting up a tailored statutory management regime for recognised systems.

The consultation paper also proposed that the new recognition regime runs parallel to the existing designation regime under Part 5C of the Reserve Bank Act 1989, under a similar co-regulatory arrangement with the FMA.

Read the March 2013 consultation paper (PDF 391KB)