CoFR Narrative for Engagement with the Financial Sector
21 August 2026
Overall Vision for the Economy and the Financial System.
The Council of Financial Regulators (CoFR) supports the Government’s vision for a resilient, growing economy that supports businesses, creates jobs, and results in long-term prosperity for New Zealanders. CoFR’s work contributes to Government priorities, especially economic growth and productivity, by helping agencies to steward the financial system, and supporting modern, fit-for-purpose, and proportionate financial regulation. Financial sector businesses are critical partners in achieving these goals.
CoFR's role and focus under the current model
CoFR’s statutory function is to facilitate co-operation and co-ordination between its members to support effective and responsive regulation of the financial system in New Zealand. The current operating model positions CoFR to be strategic, forward-looking and deliberate, with a clear system focus to better enable effective and responsive regulation and support the overall effective functioning of the financial system.
Based on this, CoFR has identified the following system level priorities:
- identifying system risk and opportunities through scanning and assessment,
- deploying time-limited taskforces to address specific system wide issues that require a CoFR-wide response, and
- ongoing but more targeted and purposeful engagement with the sector.
CoFR wants to engage with the sector effectively. This includes convening the Deposit Takers Forum and Insurance Forum to discuss regulatory initiatives and emerging risks, issues, or concerns. We are interested in any ideas from the sector on how CoFR could improve its external engagement.
Strategic priorities for CoFR members
CoFR members’ immediate strategic priorities for the financial sector aim to support the Government’s wider aims to foster economic growth and productivity, alongside stability and resilience of the sector.
Modernising payments
Payments are vital to the economy and CoFR is supporting cross-agency work to modernise New Zealand’s retail payments system. This includes RBNZ-led work on the performance, infrastructure and governance of the payments system, and cash system issues; and MBIE-led work on rules for payment service providers. Alongside regulated open banking, oversight of designated payment networks, and the Anti-Scam Alliance, these initiatives intend to support faster, cheaper, and safer payments. Better payments can foster productivity and growth by reducing payment costs, delays and administrative burdens across the economy.
CoFR members are working closely together to coordinate cross-agency engagement with the sector. This includes engaging with major banks who are key providers of payments services, and are shareholders and participants in Payments NZ, which manages the core interbank payment systems and setting associated rules and standards. We encourage financial sector businesses to submit their views on the RBNZ’s recently released issues paper.
Capital deepening
Increasing the amount and quality of productive assets available to each worker is important for lifting productivity and growth. MBIE is leading work on how government can support firms to invest in technology, equipment and other productive assets, including by improving access to suitable finance at different stages of growth and strengthening domestic investment opportunities. CoFR supports this work by coordinating relevant member perspectives and engagement with the financial sector. We want the sector’s views on the main barriers to productive investment and what government, financial institutions, and investors – including KiwiSaver providers – could do to address them.
Adapting regulation to innovation in finance
CoFR members are working together to ensure New Zealand’s regulatory system remains responsive and proportionate so that it can both support, and adapt to, financial innovation while maintaining trust and resilience. Technologies such as artificial intelligence, distributed ledger technology, and digital money and assets are reshaping financial services, markets, and infrastructure. These technologies could make transactions faster and cheaper, improve access to investment and enable more innovative and competitive services. However, they may also create new risks relating to financial stability, consumer protection, accountability, cyber security, operational resilience, and legal certainty. Through the MBIE-led consultation on payment services regulation, we welcome the sector’s views on emerging opportunities and risks, where regulation may need to adapt, and the respective roles of government, regulators and businesses.
Recent reforms
We recognise that the sector is implementing a significant programme of regulatory modernisation and digital change. This includes the Deposit Takers Act, the Reserve Bank’s capital review for deposit takers, credit contract and financial conduct reforms, AML/CFT reform, regulated open banking, the Digital Identity Services Trust Framework, and updated identity-verification settings. Together, these changes seek to modernise regulation, strengthen trust and resilience, support competition, and make financial services easier to access and deliver.
We acknowledge the cumulative operational impact on the sector and appreciate its constructive engagement. Continued collaboration between agencies and the sector will be important to implement the reforms effectively, manage interactions between them and ensure their intended benefits are realised.
Strengthening collaboration
CoFR is committed to a strategic and coordinated relationship with the sector. This includes clearer communication about regulatory priorities, better coordination of agency engagement and information requests, and more structured opportunities for the sector to provide early input on emerging issues and practical implementation. We value the sector’s insights on emerging developments, practical implementation and opportunities to improve coordination.
Holistic and connected advice
CoFR members aim to provide Ministers with a joined-up view of the financial system, including the cumulative effects of regulation, interactions between prudential, conduct, consumer and competition settings, and opportunities to improve sequencing and reduce unnecessary duplication. Advice will also consider trans-Tasman alignment where this could reduce friction, support competition or improve the effectiveness of regulation, while recognising where New Zealand’s circumstances require a different approach.