By Jennifer Tunna*
In the last three years, a large number of New Zealand’s finance companies have effectively collapsed and there has been little activity amongst those left standing. As a result, depositors have suffered large losses and investor confidence in the sector has become practically non-existent. In response, the New Zealand government has undertaken substantial reform to the regulatory framework applying to New Zealand’s remaining and future non-bank deposit takers. These reforms impose considerably more onerous obligations on deposit takers and their corporate trustees with a view to achieving a stated purpose – the maintenance of a sound and efficient financial system. This note seeks to provide a summary of the reforms.
The full note can be accessed here: “Regulation of New Zealand’s non-bank deposit takers: The new regime unfolds” (2010) 21 JBFLP 174.
* Jennifer Tunna, Senior Solicitor, Chapman Tripp, Auckland.