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FSLAB could be slower

Progress of the Financial Services Legislation Amendment Bill may be slower under the new Labour-led government than it might have been under National.

Tuesday, October 24th 2017, 6:00AM

by Susan Edmunds

The bill, which brings advice provisions under the Financial Markets Conduct Act, has been introduced to Parliament.

It had been suggested the bill would be passed by the end of this year or early next, followed by a code of conduct being approved in August next year. The law is set to come into force in February 2019.

But financial law expert David Ireland said there was a risk of delay under the new regime, as the new government gave precedence to other work.

"Nothing changes in principle but the anticipated timeframe is now even more challenging, given competing political priorities."

Sue Brown, a lawyer and formerly head of regulation at the Financial Markets Authority, agreed that was a “real possibility”.

“Not because I sense there’s a policy difference between the parties, but because of the practicalities of government formation, portfolio allocation and assimilation among what looks likely to be a lively first 100 days policy agenda.”

Market jitters as a result of the surprise result are expected to be short-term.

But AMP head of investment strategy Greg Fleming said investors should note the result reflected a degree of disenchantment with the status quo.

“The incoming New Zealand Government is not wedded to the conventional economic consensus, and may well experiment more profoundly with alternatives than some have expected.”

He said the dollar would likely be lower, bond yields could improve and equities could be headed for a “change in market leadership rather than outright correction.”

“Companies with construction and infrastructure (telecom/IT/utilities) are likely recipients of greater contract spending. Public-private partnerships (PPP) may also develop further, if pragmatism about getting results prevails over ideological objections to the PPP model.

“Healthcare and elderly care companies are potentially major beneficiaries from higher social spending and a focus on older citizens’ needs. Experiments with new funding models are probable and will create opportunities for investors alert to the ‘ageing demographic’ theme.”

ASB wealth economist Chris Tennent-Brown said a change of government might have had more impact if Labour had not shunted any capital gains tax to the next political term.

One area of uncertainty is the Reserve Bank’s Policy Targets Agreement. Labour has signalled that it wants to add employment to the Reserve Bank aims. Peters has also signalled he wants to widen its mandate. That could cause uncertainty for international investors eyeing this country.

“Any change to the PTA, the details of that will be interesting,” Tennent-Brown said.

Tags: AMP ASB bonds conduct David Ireland equities Financial Markets Conduct Act Financial Services Legislation Amendment Bill investment Markets politics Reserve Bank Sue Brown

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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