New Zealand regulators said they have not found any evidence of systemic misconduct in the banking system so far as part of their ongoing conduct and culture review, but noted their final findings in October or November may "test" their current stance.
New Zealand's Financial Markets Authority and the Reserve Bank of New Zealand said they have not seen evidence of "widespread, systemic issues" to warrant a commission of inquiry in New Zealand, like the one currently in action in Australia. "However, the work we have initiated may test this view," the regulators said in a joint May 30 news release.
The regulators initiated a review of the conduct and culture of New Zealand banks in May following concerns that Australia's ongoing royal commission into misconduct could have an impact on New Zealand's own financial sector. The regulators said in its preliminary assessment that some banks took a proactive approach to conduct risk while other banks have not begun to fully embed conduct risk into their operations.
The regulators also asked 15 major life insurance companies about their conduct and potential risks, giving them until June 22 to respond.
The FMA and the central bank will request further information and verification from banks following the initial assessment. The regulators will identify any gaps in its framework for regulation and will report on their findings in October or November.
