FMI Act submission

29 Sep 2021

On 26 July 2021, the Reserve Bank released two consultations for the purposes of implementing the Financial Market Infrastructures Act 2021. The first consultation related to the framework for identifying systemically important financial market infrastructures (FMIs). The second related to the development of standards for the FMIs that are designated under the legislation. The Reserve Bank has previously indicated that the High Value Clearing System and Settlement Before Interchange, which are governed by Payments NZ, are likely to be designated as systemically important FMIs. In light of this, we have made a submission on the consultations. The Reserve Bank plans to implement the law over an approximately 18 month transition period which is expected to be completed at the end of 2022.