The bank publishes its Enforcement Principles and Criteria Guidelines
The Reserve Bank of New Zealand has published its Enforcement Principles and Criteria Guidelines which serve as the foundation of the bank’s enhanced enforcement framework.
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Christian Hawkesby, deputy governor and general manager of financial stability, said the principles and criteria are part of a broader initiative in which RBNZ is reviewing its regulatory frameworks “to ensure that they are clear, evidence-based, and fit-for-purpose.”
The enforcement principles – risk-based, proportionate, and transparent – guide the direction of RBNZ’s investigation and enforcement strategy and inform its approach to applying its enforcement discretion.
Meanwhile, RBNZ’s enforcement criteria – seriousness of conduct, responsiveness, public trust and confidence, and efficacy – are specific considerations which will be worked through and weighed against the available evidence when deciding on the appropriate enforcement response to non-compliance.
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“These new guidelines will provide clarity on our enforcement framework by setting out the considerations that we apply when we select matters for investigation, carry out investigations, and ultimately take decisions relating to enforcement matters,” Hawkesby said. “This strengthened enforcement framework further supports our intention to be consistent, robust, and transparent in our decision-making processes.”
The principles and criteria were consulted on in October 2021.
RBNZ plans to publish further enforcement framework guidelines later in the year, including Enforcement Guidelines and Investigation Guidelines.
