Financial regulators team up
Reserve Bank, FMA form new Council for Financial Regulators, with help from Treasury and Ministry of Economic Development.
A group of regulators has teamed up to create a new Council of Financial Regulators.
The Council held its first meeting last Friday September 9, chaired on that occasion by Reserve Bank Governor Alan Bollard.
The permanent members of the Council are the Reserve Bank and the Financial Markets Authority (FMA), while its associate members are The Treasury and Ministry of Economic Development.
Senior officials of the four organisations were present at Friday’s inaugural two-hour meeting.
“What the council means for New Zealand is that the two key financial services regulators are talking together regularly and at a high level,” says Dr Bollard.
FMA chief executive Sean Hughes says: “We aim to implement a new era of cooperation and information sharing that will result in better, more informed regulation of New Zealand’s capital and financial markets.”
The Council’s objectives include the sharing of information, identifying important trends and issues and coordinating responses to those issues, and ensuring appropriate coordination arrangements are in place to respond to events and developments.
The regulators expect that the arrangement will enable them to identify and respond more quickly to emerging common concerns in the financial system.
At the meeting’s end, a memorandum of understanding was signed between Dr Bollard and Mr Hughes on behalf of their respective organisations.
The council will meet on a quarterly basis, and the Reserve Bank and FMA will take turns to chair the meetings.
Issues discussed will remain confidential unless disclosure is required by law or agreed by the permanent members.
Niko Kloeten
Tue, 13 Sep 2011
Tue, 13 Sep 2011
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Financial regulators team up
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