Financial Markets (Regulators and KiwiSaver) Bill

The debate on this part includes schedule 1.

I am very pleased to rise and comment on the Financial Markets (Regulators and KiwiSaver) Bill. Part 1, of course, deals with the preliminary provisions. In some ways, it is a bit unfortunate that we start the debate in the Committee stage on such an important piece of legislation by looking at the preliminary provisions in respect of the interpretation sections rather than looking at some of the more meaty elements of the legislation, which is where we will debate the substance. Of course, the debate on Part 2 will probably be focused on the role of the Financial Markets Authority, and I will speak to that in some more detail.

I know that the Committee stage is an opportunity to look at the more technical elements of the legislation and to explain a little bit about why the Commerce Committee undertook the particular approaches that it undertook. I will comment particularly on the way that we have restructured the language regarding financial markets participants. I think we have done quite a good job, and I acknowledge the officials for all their good work. I know that we were working under the pressure of time and I think we nailed what we were trying to achieve in this particular provision of this part. I congratulate those who submitted to us on these issues and also the officials, who put in such a fine effort. I do not want to say much more on Part 1, because it really is not the substance of the debate and I would rather leave the substance to the more substantive parts of the bill.

I am not going to let an opportunity go by because, although Lianne Dalziel is dead right—this is not the crux of the matter—the truth is that Part 1 of the Financial Markets (Regulators and KiwiSaver) Bill establishes the purpose of Parts 1 to 4, which includes establishing the Financial Markets Authority as an independent Crown entity. It is easy to say—just like that—but this is a significant shift. The purpose contained in Part 1, which talks about some of these issues more broadly: the main objectives and functions—

💬 Hon Lianne Dalziel: Part 2 that is.

No, no, I know what I am doing. I would like to suggest that, although we are talking about the purpose at this stage, we are actually seeing a fundamental shift in the regulatory landscape for the oversight of the financial markets in New Zealand. The announcement about this was originally made at the Institute of Finance Professionals New Zealand dinner in April last year, and thanks to members of the Commerce Committee and others we have seen some speedy progress on this legislation.

Before we head into the detail of the bill, I acknowledge the work that has been done by the chair of the Commerce Committee, Lianne Dalziel, and some of the changes that have been made as part of this process to get to where we are today. I will leave it there; I did not want to take any opportunity other than to say we are entering into quite a significant step here. I know that Lianne Dalziel will be anxious to make contributions to other parts, but I look forward to the speedy progress of this legislation and its sister—or brother—piece of legislation, the securities trustees legislation, through the Committee stage over the next hour or so.

The question was put that the amendments set out on Supplementary Order Paper 222 in the name of the Hon Simon Power to Part 1 be agreed to.

Amendments agreed to.

Part 1 as amended agreed to.

Part 2 Financial Markets Authority