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Disclosure requirements for non-bank deposit takers
Discussion document on disclosure requirements for non-bank deposit takers released
The Reserve Bank, in conjunction with the Ministry of Economic Development, today released a discussion document on proposed disclosure requirements for the non-bank deposit taking (NBDT) sector.
The discussion document’s main proposals include requiring NBDTs to disclose a standardised set of prudential information and for these disclosures to be updated six-monthly.
Reserve Bank Deputy Governor Grant Spencer said disclosure of standardised prudential information will provide investors with a framework for analysing an NBDT’s risks, and allow investors to compare risks between NBDTs more easily. This will improve market discipline, and confidence in the NBDT sector.
“The six-monthly frequency also aligns prudential disclosures with financial statements during the life of a prospectus,” he said.
Other proposals in the Prudential Disclosure Requirements for Non-Bank Deposit Takers discussion document include: disclosures being subject to auditor reviews; and investors being notified when disclosures are updated as a result of material changes in an NBDT’s circumstances.
The discussion document (http://www.rbnz.govt.nz/finstab/nbdt/4377676.pdf, PDF 290KB) and information on existing prudential requirements (http://www.rbnz.govt.nz/finstab/nbdt/3857991.html) are available on the Reserve Bank website. The discussion document can also be accessed from the Ministry of Economic Development website (http://www.med.govt.nz/templates/ContentTopicSummary____45916.aspx).
Submissions close on 19 May 2011.
Background
Prudential regulation of NBDTs
is provided for in part 5D of the Reserve Bank of New
Zealand Act 1989. The latest of these regulations came into
effect in December 2010.
Since then the Reserve Bank and
the Ministry of Economic Development have been working
together to develop disclosure requirements for the
prudential regulations under the Securities Act
1978.
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