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Disclosure review to reduce compliance costs

(PR.co.nz) The Reserve Bank is inviting submissions on proposals to change the current disclosure regime for registered banks.

Releasing a consultation document, Deputy Governor Grant Spencer said a key objective of the review is to reduce compliance costs associated with current disclosure requirements first introduced in 1996.

“We also want to better match the needs of the key stakeholders,” Mr Spencer said. “This review is likely to significantly reduce and modify the Reserve Bank’s disclosure requirements, while introducing other ways of collecting information for prudential purposes.”

Every quarter banks are currently required to publish a high-level Key Information Summary (KIS); a detailed General Disclosure Statement; and a Supplemental Disclosure Statement containing background documents. In addition, banks face other disclosure requirements through the Financial Reporting Act 1993 and the Securities Act 1978.

Mr Spencer said the existing disclosure regime was designed to improve market discipline on the banks, to increase the public’s financial awareness, and to strengthen directors’ responsibilities. However, feedback suggests that the current disclosure requirements may not be the most effective way of meeting these objectives.

The consultation document puts forward two preferred options for change in the bank disclosure regime. However, the Reserve Bank does not want to be prescriptive and welcomes ideas on alternative approaches, Mr Spencer said.

The consultation document can be downloaded here (PDF).

Media Release on 6 August 2010 from Mike Hannah, Head of Communications for RBNZ.

 



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