1. Hon MARK GOSCHE (Labour—Maungakiekie) Link to this
to the Minister of Finance
Is the Government taking any steps to improve regulatory oversight of non-bank deposit takers?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Yes. Today I have announced that all deposit takers, including finance companies, building societies, and credit unions, would have to be registered by the Reserve Bank and comply with minimum prudential requirements covering such things as the minimum amount of capital, the need for capital ratios, and the like. Those regulations should help, in particular in the longer term, to price risk more accurately.
Hon Dr MICHAEL CULLEN Link to this
We are taking a series of actions across portfolios to enhance the supervision of this sector. In addition to the announcement today, the Minister of Commerce yesterday informed the House that the Government is drafting regulations to ensure that all trust deeds provide trustees with robust powers to get the information they need in order to carry out their duties in the interest of investors. None of those steps alone, of course, is a quick fix, but together they will significantly improve regulatory oversight in this area.
Hon Bill EnglishCan the Minister tell the House when the regulations he has just referred to might be passed, and when the legislation that would back up his announcements this morning might come to the House?
Hon Dr MICHAEL CULLEN Link to this
I am advised by the Minister of Commerce that in terms of the regulations, she is hoping to have those within the next 2 or 3 weeks or so. In terms of the legislation, we would hope to get the principal bill into the House before Christmas, so that submissions can be called for over the summer period. I hope we can then make reasonably quick progress in the new year in that regard.