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Timeframes shift for financial services reforms

Contributors:
Marika Eastwick-Field, Emmeline Rushbrook
Published on:
27 March 2020

Over the course of the last week, in response to the significant disruption and other impacts of COVID-19, the Ministry of Business, Innovation and Employment (MBIE) has amended existing timeframes for compliance with new legislation and for providing submissions on proposed legislation.

MBIE has amended timeframes for the following financial services legislation:

  • Credit Contracts Legislation Amendment Act 2019. MBIE has advised that there will be no change to provisions relating to mobile traders and high-cost credit contracts, which will come into force on 1 June 2020. However:
    • the commencement of Part 5A of the CCLA, relating to fit and proper person certification will be delayed from 1 September 2020 to no earlier than 1 March 2021; and
    • the commencement of new regulations (currently in draft, with new consultation dates to be advised by MBIE) and the other remaining provisions of the CCLA will be delayed from 1 April 2021 to no earlier than 1 October 2021.

These amended dates will be reviewed every three months, with further amendments to be advised by MBIE.

  • Financial Services Legislation Amendment Act 2019. The Government has deferred the start date of the new financial advice regime set out in the FSLAA from 29 June 2020 to early 2021. Financial advice providers were previously required to have transitional licences in place by 29 June 2020, with a two year transitional period to ensure compliance with the FSLAA.  The Financial Markets Authority has reported that the new date will be communicated well in advance and that the Government has indicated it expects this date to be no earlier than March 2021.
     
  • Financial Markets (Conduct of Institutions) Amendment Bill. Submissions on the Bill were originally due to close today (27 March 2020).  However, MBIE has extended the time for submissions until 30 April 2020.

We expect that the above timeframes could be subject to further change as matters continue to develop, to ensure that the financial service industry has appropriate time to consider, consult on and implement these legislative reforms.

Please get in contact if you would like to discuss any of the above legislation with us.

This article is intended only to provide a summary of the subject covered. It does not purport to be comprehensive or to provide legal advice. No person should act in reliance on any statement contained in this publication without first obtaining specific professional advice. If you require any advice or further information on the subject matter of this newsletter, please contact the partner/solicitor in the firm who normally advises you, or alternatively contact one of the partners listed below.