The NZ Government has just released its second document on the proposed regulation of the financial services industry – and the industry says at first glance the proposals look “promising”.

Insurance Council of New Zealand CEO Chris Ryan told Sunrise Exchange News this morning that while the council will take some time to go through the nine documents that have been released, the draft regulations look “less prescriptive” than those operating in Australia.

“New Zealand insurers have been running quite effectively with a self-governed process, and we didn’t want legislation to be as severe as the regulations introduced by Australian regulators,” he said.

Mr Ryan says the key papers that have been released which relate directly to the industry are those on the regulation of financial institutions, the governance of mutuals, dispute resolution, and the review of insurance.

“The Insurance Council has a group dedicated to regulation that are carefully going through the papers,” he said.

The final draft legislation relating to the regulation of the NZ insurance industry is likely to be released next year. The regulations are likely to come into force from 2008.