The New Zealand Government has announced a review of how the “non-bank finance sectors” are regulated to ensure there is a consistent framework for regulating products and providers.

The review will assess the current regulation of insurance, superannuation, managed fund products and securities offerings, as well as credit unions, friendly societies, building societies, finance companies and industrial and provident societies.

Commerce Minister Pete Hodgson says the review consolidates a number of other reviews already planned or being carried out.

“Effective regulation is key to maintaining confidence in, and promoting, a sound and efficient financial sector,” he said. “Providers, products, services, markets and the needs of consumers change over time and it’s important that the regulatory environment evolves to accommodate that change.”

The review will be conducted by the Economic Development Ministry, which will also look at how NZ’s non-bank regulation takes account of international developments and any appropriate co-ordination opportunities with Australia.

But Kiwi insurers and brokers can relax about legislation being rushed through. The department says policy decisions on the review will take until the end of next year, with any changes implemented through legislation in 2008.

The NZ industry is already bracing for a spate of regulation to replace the present “soft touch” system.