Wednesday, 6 March 2013

New Zealand’s new super-super-secret Council of Financial Regulation.

New Zealand’s new super-super-secret Council of Financial Regulation.

2012 February 8
Posted by Iain Parker
New, New Zealand super-super Council of Financial Regulation chock full of bankers all with a history of privitisation able to operate in complete secrecy.
If this were not so serious its laughable;

A new Council of Financial Regulators has been established to foster cooperation between financial and prudential regulators in New Zealand.
On 9 September, the Council held its first meeting, chaired on this occasion by Reserve Bank Governor Alan Bollard.

The permanent members of the Council are the Bank and the Financial Markets Authority (FMA). Associate members are The Treasury and Ministry of Economic Development. Senior officials of the four organisations were present at Friday’s inaugural two-hour meeting.

“What the Council means for New Zealand is that the two key financial services regulators are talking together regularly and at a high level,” said Dr Bollard.

FMA CEO Sean Hughes said: “We aim to implement a new era of cooperation and information sharing that will result in better, more informed regulation of New Zealand’s capital and financial markets.”

The Reserve Bank had good working relations at an operational level with FMA’s predecessor bodies, such as the Securities Commission. The Council embeds and reinforces those working relationships and ensures important issues are discussed at the most senior level.

The Council’s objectives include the sharing of information, identifying important trends and issues and coordinating responses to those issues, and ensuring appropriate coordination arrangements are in place to respond to events and developments. The regulators expect that the arrangement will enable them to identify and respond more quickly to emerging common concerns in the financial system.

At the meeting’s end, a Memorandum of Understanding (PDF 1.2MB) was signed between Dr Bollard and Mr Hughes on behalf of their respective organisations.

The Council will meet on a quarterly basis, and the Bank and FMA will take turns to chair the meetings. Issues discussed will remain confidential unless disclosure is required by law or agreed by the permanent members.


Lets take a quick look at the heads of the four institutions to make up the new super-super regulator;
Reserve Bank of New Zealand – Alan Bollard – Has stated in his 2010 book titled -Crisis- that he only hands down international regulations of what he described as “shadowy group” the Bank of International Settlements based in Switzerland. RBNZ has used its independence to completely outsourced the control of issuance and allocation of the money supply to NZDMO and private lending institutions who now issue every dollar in circulation as an interest bearing loan rendering our national debt unrepayable from the day it is born by mathematical certainty.

Financial Market Authority – Sean Hughes – Like Securities Commission chair Jane Diplock, his predecessor at the Financial Markets Authority’s precursor, Hughes comes from the Australian Securities and Investments Commission. Previously he headed legal operations for National Australia Bank Ltd.’s banking operations across the Tasman, and served as group general manager of compliance at Australia and New Zealand Banking Group Limited.
“By reserving criminal penalties for truly reprehensible breaches, the new regime should be more fair and proportionate. And with effective enforcement by FMA, the range of available civil remedies will ensure there are adequate incentives for good corporate government by directors – and greater protection for investors.”

Australian banker gets nod as first Financial Market Authority CEO 

Ministry of Economic Development – David Shol – Replaced another banking man Geoff Dangerfield who is now CEO NZ Transport Agency. David Smol is another private banking empire privitisation ideologue;
“Mr Smol has demonstrated the leadership that this position requires, particularly with his roles in changes to the regulation of the electricity sector, including the establishment of the Electricity Commission and the reform of telecommunications regulation, including loop unbundling and the operational separation of Telecom. He has built effective and positive relationships with Ministers and stakeholders over time and has a strong reputation as a trusted, credible and highly competent public servant,” Mark Prebble said.
David Smol first came to New Zealand in 1989 and spent four years at the Treasury. From there he moved into the Energy sector joining first the Electricity Corporation and then becoming involved in the Contact Energy establishment team when the Corporation was split. In 1997 Mr Smol returned to the United Kingdom for family reasons, taking on a consultancy role working mainly with energy companies and financiers, in the UK and Europe. He subsequently became a director of the consultancy and took on responsibility for the human resource and then the finance functions. In 2003 Mr Smol was appointed to the role of Deputy Secretary, Energy and Communications, which prompted a return to New Zealand.

New Zealand Treasury – Gabriel Makhlouf – Former private secretary to Gordon “lite touch regulation” Brown, Makhlouf caused an immediate stir when appointed Treasury top dog in 2011 he suggested dropping all screening of foreign investment.

This whole process was put in place by former New Zealand Parliament Cabinet Minister Simon Power before he departed parliament mid parliamentary to do this;

Simon Power, GM Business Bank, Private Bank, Wealth & Insurance

Simon is our General Manager Business Bank, Private Bank, Wealth & Insurance.
Simon joined us after a notable career in New Zealand politics. He was a senior Minister with the Government and previously held the Justice, State Owned Enterprises, Commerce, Consumer Affairs and the Law Commission portfolios. He was also Associate Minister of Finance and Deputy Leader of the House.
During his tenure as a senior minister Simon led much needed regulatory reform in New Zealand’s financial markets. He also led change to New Zealand's legal system and worked closely on the Single Economic Market initiative with Australia.
Simon brings strong leadership and business acumen, an affinity for working with people, a strong customer focus and a wide network with key public and community groups.

No comments:

Post a Comment