The announcement is a decision in principle to the levy's introduction. The levy would apply to banks, non-bank deposit takers, insurers and financial market infrastructures.
Section 296(1) of the RBNZ Act requires the Minister to ensure there has been consultation with representatives of those who are liable to pay a levy or be significantly affected by it, before recommending regulations.
Consultation will run for ten weeks and covers:
- proposing full cost recovery under the levy for all prudential costs
- the sectoral scope of the levy, and
- the method of calculating or ascertaining the amount of the levy paid by individual regulated entities.
Submissions are due by 5pm on 16 October. Final Cabinet decisions are then expected in early 2027.
We look forward to engaging with the industry on these proposals.
More information
Prudential levy consultation | Citizen Space
Financial industry to bear the cost for regulation | Beehive.govt.nz
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