A cross-sector thematic review of regulated entities’ governance practices by the Reserve Bank of New Zealand (RBNZ) –
Te Pūtea Matua and the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has highlighted the need for boards to
be focused on continuous improvement to ensure future success.
The Governance Thematic Review assessed the foundational elements of good governance by reviewing the policies,
processes and practices of boards of regulated entities. This included assessment against legislative requirements, RBNZ
and FMA guidance, as well as local and international guidance on good governance practices.
RBNZ Deputy Governor Christian Hawkesby says history has shown that good governance - particularly around the core
accountabilities of organisational strategy, culture and risk management - is critical to the success of financial
institutions and the stability of the system as a whole.
"We therefore all rely on boards to provide effective direction, oversight and governance," Mr Hawkesby says.
“We observed a variety of governance practices across entContinue ities, which is why the report shares examples of good practice that others can learn from."
A sample of 29 entities regulated by the RBNZ and/or the FMA across the banking, insurance, non-bank deposit taking and
investment management sectors participated in the review.
FMA Executive Director Regulatory Delivery Clare Bolingford thanked the boards and executive teams for their engagement
and participation in this review.
"There is real value in maintaining an open and collaborative approach to support continuous improvement," Ms Bolingford
says.
“The report shows how and where boards have built the foundational elements for good governance practices and effective
oversight. Establishing and maintaining these is fundamental. It supports boards in moving to a more comprehensive
focus, combining robust governance frameworks, board behaviours and culture to deliver for customers, shareholders and
all their stakeholders.”
Individual feedback has been provided to participating entities and we will be engaging with these entities to support
the recommended changes.
We encourage boards of regulated entities who did not participate in the review to assess their governance arrangements
against our expectations and adopt good practices outlined in this report. We will also be considering these findings in
upcoming policy reviews.More informationGovernance Thematic Review report Cross-sector thematic review on governance - Reserve Bank of New Zealand - Te Pūtea Matua (rbnz.govt.nz)Thematic Reviews Thematic reviews - Reserve Bank of New Zealand - Te Pūtea Matua (rbnz.govt.nz)