The third reading of the Reserve Bank of New Zealand (Covered Bonds) Amendment Bill today has been welcomed by the New Zealand Bankers’ Association.
The Bill establishes a legislative framework for issuing covered bonds and enhances the Reserve Bank’s supervision of covered bond programmes.
“The new law brings us into line with other jurisdictions. This Bill clarifies matters for investors and means that New Zealand covered bond issues are no longer at a competitive disadvantage with other countries,” New Zealand Bankers’ Association chief executive Kirk Hope said.
“Covered bonds are a useful funding tool and provide benefits for both investors and the bond issuing banks.
“They extend our banks’ access to cheaper and more stable offshore funding. They also give investors the confidence to continue to provide essential funding to help facilitate our economic growth.
“In turn, consumers benefit from banks’ access to offshore funding to help meet their needs and aspirations,” Hope said.
The New Zealand Bankers’ Association has welcomed an independent tool to help people find a KiwiSaver fund that suits them best.
KiwiSaver fund finder was launched today by the Commission for Financial Literacy and Retirement Income and is available on the Commission’s Sorted website.
The interactive online tool, which has also been designed for mobile devices, allows people to compare the fees, returns and services provided by different KiwiSaver funds.
“It’s a useful tool that will help more people find a KiwiSaver fund that works best for their particular circumstances. It makes the comparative disclosure information about different funds much more accessible,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“You can easily keep an eye on your fund, and how it compares to other funds and providers. This will become increasingly important as our contributions to KiwiSaver rise over time.”
“We strongly support this kind of financial literacy initiative. It’s all about having more well-informed people investing in KiwiSaver now and in the future. Providing easy to understand information is essential to that goal,” Hope said.
People should be wary of transferring money on behalf of people they don’t know. The warning was issued today by the New Zealand Bankers’ Association in response to a new banking scam.
In the latest scam people are contacted by strangers, by email, telephone or through social media sites, claiming they have accidently paid funds into their bank account. They ask that the funds be returned by using a money remittance service.
In such cases, the unsuspecting New Zealand bank customer is being used as a ‘mule’ to transfer stolen funds as part of a type of money laundering operation. The funds deposited in their account will have been stolen from another victim’s account, usually from a ‘phishing’ scam where people have unwittingly provided the scammer access to their account. The mule is then asked to withdraw the funds in cash and use a money remittance service to ‘return’ the funds.
Social engineering techniques are often used by scammers to allay any suspicions the mule may have. These include the need for speed, exploiting a desire to help, using threats, or inventing an emergency.
“Anyone who suspects they are involved in a banking scam should notify their bank as soon as possible. Don’t use a money remittance service to send money to people you don’t know. It’s bound to be scam,” said New Zealand Bankers’ Association chief executive Kirk Hope.
Mule scams come in a variety of guises. Another version involves people accepting online job offers to receive funds and transfer them on while retaining a ‘commission’. Other cases involve fake romances and charities.
“If in doubt about any suspicious activity involving your bank accounts, contact your bank or the Police,” Hope said.
Commerce Committee