Regulatory Alerts2023-08-24
Reserve Bank of New Zealand Review of Connected Exposures Policy Summary of Submissions and Final Decisions
The Reserve Bank of New Zealand has finalized revisions to its Connected Exposures Policy (BS8) following a consultation on an exposure draft published in January 2023. The regulator narrowed the definition of 'connected persons' by tightening thresholds for control and significant influence, restricting the scope of senior managers and close family members captured, and removing the 'specified person' concept to reduce compliance burdens. These changes, alongside clarifications on credit risk mitigation and staff banking packages, are scheduled to take effect on 1 October 2023 through amendments to banks' Conditions of Registration.
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