Press Release – Reserve Bank The Council of Financial Regulators (CoFR) Kaunihera Kaiwhakarite Ahumoni has created a new website. You can view it here. CoFR contributes to maximising New Zealands sustainable, economic wellbeing through effective and responsive regulation …
The Council of Financial Regulators (CoFR) – Kaunihera Kaiwhakarite Ahumoni – has created a new website. You can view it here.
CoFR contributes to maximising New Zealand’s sustainable, economic wellbeing through effective and responsive regulation of the financial system in New Zealand.
CoFR is made up of five agencies:
Te Pūtea Matua – Reserve Bank of New Zealand,
Te Mana Tatai Hokohoko – Financial Markets Authority,
SMSFs leverage into property bonfire - MacroBusiness macrobusiness.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from macrobusiness.com.au Daily Mail and Mail on Sunday newspapers.
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at 1:00 pm on February 16, 2021 | 16 comments
Back in 2016, David Murray – the chairman of the Financial System Inquiry (FSI) – recommended self-managed superannuation funds (SMSFs) be banned from borrowing to invest because of risks to the financial system:
“Superannuation funds should not be leveraged, including SMSFs, because leverage magnifies risk. If the system is unleveraged, then if asset prices rise, bubble and fall then all the loss is contained within the superannuation funds and does not have another contagion effect because there are no forced sellers of other assets”.
In 2019, the Council of Financial Regulators (CoFR) backed David Murray’s call, recommending the federal government ban property investment via SMSFs after 18,000 of these Funds were found to have more than 90% of their savings in a single asset class, specifically investment properties. However, its recommendation was snubbed by Treasurer Josh
Tēnā koutou katoa, welcome all.
It is a privilege to be here with you today – alongside the rest of the Bank s Senior Leadership Team – to report on the Reserve Bank of New Zealand s achievements, challenges, and opportunities on what has been an extraordinary and unprecedented year.
Like many organisations and businesses, we, at Te Pūtea Matua, have had to change our way of working, refocus our priorities, and take necessary actions to continue to support cashflow and confidence among New Zealanders during the tough times.
The experience of the past year has brought forward new challenges, risks, and opportunities for us. While our priorities in the recent (2019–20) financial year have been focused significantly on supporting New Zealand s economic recovery from the COVID-19 pandemic, we have also continued our work on a wide range of initiatives, including: