Incentive reform: Opportunities missed

The proposals for further regulation released at the end of last month follow the damning report from the Australian Royal Commission (ARC) on the conduct of banks and other financial institutions and the FMA and Reserve Bank's reports last year on the conduct of New Zealand banks and insurers. 

The Government’s preferred options are a reasonably balanced response to the issues identified and do not go as far as the Australian Royal Commission recommendations. 

However, the preferred options are still ambitious and represent a significant change to how banks and insurers have been regulated to date. 

A lot of detail still has to be worked out.