11 Aug 2011

Bill toughening finance firm rules passes first stage

9:22 am on 11 August 2011

Legislation to further improve protection for investors in finance companies has passed its first reading in Parliament with unanimous support.

The Non-Bank Deposit Takers Bill aims to help restore investor confidence in the industry.

It gives the Reserve Bank the ability to issue licences for non-bank deposit takers, including finance companies and building societies.

It also gives the bank new powers to remove finance company directors and managers where they fail to meet suitability criteria.

The legislation will now be considered by the Finance and Expenditure Select Committee.