Keep up-to-date with the key developments affecting the financial services sector.

Key areas this month include:

Fair trade protection for businesses

From 16 August 2022, the Fair Trading Act 1986’s unfair contract terms rules extend to small trade contracts. The new prohibition on unconscionable conduct in trade also comes into force this month. 

Financial institution licenses

The FMA has launched a consultation on the standard conditions for the financial institution licenses that banks, NBDTs, and insurers will need to hold under the Financial Markets (Conduct of Institutions) Amendment  Act 2022.

Financial and climate disclosures

The Reserve Bank has prepared amending Orders about the assurance reports that must accompany registered banks’ public disclosure statements. The External Reporting Board has opened its final consultation on climate-related disclosures, which includes an exposure draft of the standards. The FMA has updated its website with guidance on financial reporting exemptions. 

AML/CFT

Accounting practices involved in tax transfers on behalf of their customers have been granted exemptions from various AML/CFT requirements. The Russia Sanctions Regulations 2022 have been further amended.

Financial markets

NZX is consulting on amendments to its capital raising settings, and on additional listing pathways. The FMA is seeking feedback on its proposed guidance about financial advice concerning IPOs and listed equity securities.

Overseas investment

The United Kingdom Free Trade Agreement Legislation Bill 2022 has had its first reading. Submissions about the Bill can be made to the Select Committee until 21 August 2022.