The Reserve Bank of New Zealand – Te Pūtea Matua has published its Enforcement Principles and Criteria Guidelines which are the foundation of our enhanced enforcement framework.
“The principles and criteria are part of a broader initiative in which we are reviewing our regulatory frameworks to ensure that they are clear, evidence-based, and fit-for-purpose”, Deputy Governor and General Manager of Financial Stability Christian Hawkesby says.
The enforcement principles are a set of values that guide the direction of our investigation and enforcement strategy and inform our approach to applying our enforcement discretion. Our three enforcement principles are: risk-based, proportionate, and transparent.
The enforcement criteria are specific considerations which will be worked through and weighed against the available evidence when deciding on the appropriate enforcement response to non-compliance. Our four enforcement criteria are: seriousness of conduct, responsiveness, public trust and confidence, and efficacy.
“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. 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. We received a good range of submissions from across the financial sector and appreciate the thought and time taken in providing them,” Mr Hawkesby says.
We plan to publish further enforcement framework guidelines later in the year, including Enforcement Guidelines and Investigation Guidelines.