The Reserve Bank NZ’s Financial Markets Authority Report 2019 – Questions

Fiona Green

THE RESERVE BANK NZ’S FINANCIAL MARKETS AUTHORITY REPORT 2019 – ONLY SCRATCHES THE SURFACE

Fiona Green|Business Crisis Expert|Disability, Business, Mental Health Activist| Researcher

The recent release of the Reserve Bank NZ-Financial Markets Authority Report and its findings, shows that such an Inquiry was too narrow in scope. (Only 11 Banks, 2,000 people surveyed, 6 External Stake Holders – FinCap, Consumer NZ, NZ Banker’s Association, Banking Ombudsman, First Union, E Tu Trade Union participated.  Data collected from Bank’s Associations with Debt Collection/Credit Reporting Industries could have been included but was not. John Key urged tougher rules for NZ Banks (NZ Herald – 2/11/18 – Business Section – page 3).

The outcome of the Australia Royal Commission’s Hayne Report presents opportunities to cross reference NZ Legislation and bridge any gaps by implementing them quickly.

Business Crisis Support NZ believes New Zealand should carry-out a similar Royal Commission into misconduct in not only the Banking, Superannuation, and Financial Services Sectors – but also the Finance Companies, Accounting, Book Keeping, and Insolvency arenas.

As suggested by former forensic Australian Securities & Investments Commission (ASIC) Glen Unicomb – if any of the major (in fact any) Accounting firms are hired to audit and approve Company Reports, they should prove independence (ABC News ‘Big Four….ASIC Investigator says).

PwC, Deloitte, Ey (Ernst Young) operate in NZ as they do Australia. Major accounting firms et al who participate in a NZ Royal Commission should be included in the Terms of Reference. (This was not the case with the Australia Royal Commission whose Terms of Reference only covered restricted Banks, Insurers, Superannuation Funds & Wealth Managers).

Massey University Banking Expert Dr Claire Matthews (Opinion 30/4/18 – Does NZ need a Banking Royal Commission?) feels New Zealand does not have any endemic issues – therefore we may not need a Banking Royal Commission.

We at Business Crisis Support NZ predict that if the opportunity to have a NZ Royal Commission into misconduct in areas suggested in paragraph 3, such an Inquiry would uncover additional if not substantial findings on top of those of the recent NZ Reserve Bank-Financial Markets Authority Report. Extending a NZ Royal Commission to encompass other Sectors/Arenas will move things closer to the heart of the issue.

Thanks to Christchurch Social Justice Advocate Lisa Cowe for pointing out to Business Crisis Support NZ that the Bank’s Associates i.e. Debt Collectors, Courts, etc – are all part of the financial sector too. The Legal Complaints Review Office can confirm that debt collectors are a branch of the banking industry.

The recommendations we have offered in this post (and we are sure there are other options), can only assist in a fair and transparent process, should our Government decide to follow Australia’s lead in a Royal Commission into misconduct. Such actions would certainly sway current public opinion favourably offering assurance that steps are being taken to investigate this matter at a more serious level.   Providing an indepth investigation as opposed to only a superficial scratching of the surface is the intention of a Royal Commission in any context.

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Fiona Green

Fiona Green

|Business Crisis Expert|Disability, Business, Mental Health Activist| Researcher