Fiennes said non-bank deposit takers (NBDTs) will be required to comply with a new set of prudential requirements which are due to be introduced in late 2009 and 2010.
"We are focused on ensuring these rules and regulations work for the NBDT sector," Fiennes says.
The new prudential regime aims to provide a consistent and rigorous approach to the supervision of deposit takers, and provides a stronger basis for confidence in the deposit-taking sector.
"In addition, improved disclosure and credit ratings will assist depositors to make better-informed investment decisions," he said.
It will be mandatory for all deposit takers to obtain a credit rating by March 2010. Fiennes stressed that this is less than a year away, and deposit takers should be actively seeking to obtain these ratings now to avoid the risk of being unable to obtain a credit rating by March 2010 and therefore being in breach of the law.
"Credit ratings from approved rating agencies will play an important role in the new regulatory regime. Credit ratings assist depositors to better appreciate the risk they are taking and the rewards they are getting when they invest their money."
Fiennes said trustees are the frontline supervisors who are responsible for monitoring trust deed compliance, reporting to the Reserve Bank and enforcing compliance.
"This will require trustees to be proactive, focused and assertive with their supervisory role. The Reserve Bank Act requires the bank to review the NBDT regime, including the role of trustees within four years.
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