Media Release: FSC welcomes Minister Andrew Bayly’s reforms

The Financial Services Council (FSC) welcomes the announcements made by Minister of Commerce and Consumer Affairs Hon. Andrew Bayly around changes in regulation made at their Outlook 2024 event to the financial services sector.

The financial services sector is poised for growth and the FSC views Minister Bayly’s proposals for simplification of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI) model and reforming the Credit Contracts and Consumer Finance Act (CCCFA) as good steps towards unleashing sector potential and simplifying the system.

“These initiatives will certainly help unblock some of the regulatory pipeline for the financial services sector to deliver robust customer-focussed outcomes,” says FSC CEO Richard Klipin. “This is good for New Zealanders as we collectively navigate through the cost-of-living crisis.

‘The current complexities makes room for confusion, and high costs in managing compliance within the sector. Simplification gives the ability for financial services organisations to deliver easier, more focussed and more efficient outcomes for their customers, which are everyday New Zealanders.”

The FSC also welcomes Minister Bayly’s endorsements for the policy principles outlined in the FSC’s Blueprint for Growth. The Blueprint for Growth is the FSC’s policy leadership platform toward better financial wellbeing for New Zealanders.

“The Minister has signalled he is open for a strategic conversation around KiwiSaver and better financial outcomes for Kiwis. With KiwiSaver funds now hitting the $100 billion mark, it’s a pivotal time for a comprehensive review to ensure it is serving Kiwis at its maximum potential. We look forward to working closely with Minister Bayly, Government and regulators to ensure that the scheme is fit for purpose in the near future.

‘These decisions will not be ones that last for the next 3 years but the next 30 years. The FSC’s Blueprint for Growth and our call for a KiwiSaver review takes a long-term view to deliver a dignified retirement for millions of Kiwis who are decades away from retirement.

‘Clearly there is much work to be done, and this is an excellent start. The FSC and the sector look forward to debating and engaging with the Government and regulators to drive better financial wellbeing in New Zealand, " said CEO Richard Klipin.

ENDS