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

Key areas this month include:

Money laundering

Various new amendments to the AML/CFT Regulations come into force on 9 July 2021. They affect the customer due diligence requirements, exemptions, definitions, inclusions/exclusions, mandatory audit periods, and cross-border cash movements. The annual reporting guides for financial institutions and DNFBPs have also been updated.

Banks

The Reserve Bank has published its finalised bank capital adequacy requirements. It has also issued guidance on the application of BS16 (which relates to Tier 2 capital instruments) until 30 September 2021.

Insolvency

A new Construction Contracts (Retention Money) Amendment Bill 2021 will strengthen and clarify the retention money regime in the Construction Contracts Act 2002. The District Court (Protection of Judgment Debtors with Disabilities) Amendment Bill 2020 has passed its third reading, so that its enactment and commencement are imminent.

Financial markets

June’s developments include a temporary extension for certain financial reporting deadlines, an exemption from the FMC Act for employee share purchase schemes, guidance on various aspects of financial advice, recommendations on MIS liquidity risk management, and a number of NZX consultations.

Takeovers

The Takeovers Panel is consulting on amendments to the Takeovers Code and related legislation.

OIA

The Overseas Investment Amendment Act 2021 is largely in force from 5 July 2021. New Regulations have been issued that amend the principal Regulations in various respects. For example, they prescribe that registered banks with minimum assets of $80 billion and systemically important FMIs are strategically important businesses, and make various exemption amendments. These Regulations largely come into force during July 2021.