Regulatory Alerts2022-05-17
Regulatory Impact Statement for the Financial Market Infrastructure Bill
The Reserve Bank of New Zealand issued this statement to analyze outstanding policy issues for the Financial Market Infrastructure Bill, which establishes a new regulatory regime to mitigate systemic risks in financial market infrastructures. The document evaluates specific design features including the choice of regulatory instruments, crisis management powers, and the role of Ministerial consent in joint oversight by the Reserve Bank and the Financial Markets Authority. It recommends interim arrangements such as retaining FMI-specific statutory management provisions and requiring Ministerial consent for directions to ensure financial stability while aligning with international best practices.
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