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Microsoft's Commitment to the New Zealand Financial Services Sector

Microsoft is pleased to have helped a number of financial institutions in New Zealand move to the cloud, working in close cooperation with the Reserve Bank of New Zealand(RBNZ) and the financial institutions themselves.

We are also delighted to have helped a number of financial institutions in New Zealand such as financial services provider Squirrel, leverage the flexibility and elasticity of Microsoft's cloud to support its customers' requirements.

From sharing product and service information in the initial project scoping phase through to assisting in any required consultation with RBNZ, Microsoft stands ready to support our financial institutions customers. Through its partnership with financial institutions in New Zealand and its long-standing engagement with RBNZ, Microsoft has developed deep experience of delivering solutions that meet all applicable compliance requirements. We understand that it is our role as service provider to New Zealand's financial institutions to help facilitate compliance with the underlying guidelines and, as part of that, have developed a range of materials to help our cloud customers in the financial services sector. We have developed a practical guide in response to the RBNZ Guidance on Cyber Resilience released in May 2021, as well as practical checklists for all of our cloud services so that financial institutions can see how the use of Microsoft's cloud services, and our contractual terms, map against the relevant guidelines. Our subject-matter experts are available to understand your requirements and provide detailed information on the technical contractual and practical aspects of your proposed cloud project. This is all part of our commitment to helping our financial institution customers navigate their way to the Microsoft cloud with confidence and enjoy the benefits of digital transformation.

 

Regulatory Overview

The New Zealand financial services sector is undergoing a rapid transformation, powered by cloud technologies.

Financial services institutions across the country, including major banks and insurance companies, are adopting cloud services, from testing and development of data analytics solutions through to communications, CRM and business productivity applications.

From a regulatory perspective, cloud is permitted. The regulatory framework in New Zealand permits the use of all categories of cloud services, including public cloud services.

 

Regulatory Deep Dive

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The Reserve Bank of New Zealand (RBNZ) is the prudential regulator for registered banks, non-bank deposit takers, finance and insurance companies, building societies and credit unions. The Financial Markets Authority regulates the terms of financial products, disclosure and enforcement.

Yes.

Under RBNZ Outsourcing Policy (BS11), a “large bank” (a NZ-incorporated bank with net liabilities exceeding $10 billion) must apply for and obtain non-objection from RBNZ before the bank enters into an outsourcing arrangement, subject to specified exceptions such as the RBNZ white list.

No sector-specific audit/inspection requirements.

Data can be transferred outside of New Zealand as long as the institution ensures that the basic principles of the Privacy Act 1993 are complied with.