NZ Government Consults on Prudential Levy for Insurers and Banks

New Zealand's government has launched a consultation on a proposed prudential levy that could affect insurers, banks, and other financial institutions. The 10-week consultation aims to determine whether the levy should cover the full cost of prudential regulation and how much individual regulated entities would pay.

The Reserve Bank of New Zealand is required to consult representatives of entities that would be liable for the levy or significantly affected by it before regulations can be recommended. The proposal could create an additional regulatory cost for insurers, although the size of any levy has yet to be determined.