NZ banking enquiry being called for following Australian revelations
(27 April 2018 – New Zealand) The founder of low-cost Kiwi-Saver provider Simplicity has called for New Zealand to have its own inquiry into the financial services sector.
Sam Stubbs, founder of Simplicity, said the scandals and misconduct emerging from Australia’s Royal Commission were too big to ignore, especially given that many of the same companies operate on both sides of the Tasman.
Mr Stubbs said the main reasons offered for why New Zealand didn’t need an inquiry were because the regulations differed and there weren’t enough examples of wrongdoing to merit an inquiry, both of which he dismissed.
New Zealand Prime Minister Jacinda Ardern has not ruled out an inquiry completely saying she was keeping a “very close eye’ on the Australian outcomes. Ms Ardern highlighted that even if New Zealand don’t conduct their own inquiry, the work in Australia will “probably have an outcome that will be of use and interest to us.”
Both the Reserve Bank of New Zealand and the Financial Markets Authority have said they are closely following the developments at the Australian Royal Commission but do not have current concerns about the behaviour in New Zealand institutions.