Review of Council of Financial Regulators: An assessment of form, role, and options

The Review of the Council of Financial Regulators (CoFR), by David Moore, Preston Davies, and Dr Jamie O’Hare, assessed how effectively CoFR supports coordination and regulation across New Zealand’s financial system, and proposed future models to strengthen its value and focus.

The review, undertaken within the scope of the Reserve Bank of New Zealand Act 2021, aimed to clarify CoFR’s role, improve system efficiency, and ensure resources are directed toward measurable outcomes. CoFR, comprising the Reserve Bank, Financial Markets Authority, Commerce Commission, MBIE, and Treasury, plays a critical role in coordinating financial system oversight, risk management, and industry engagement.

Stakeholder interviews and workshops found widespread agreement that CoFR remains valuable but is not realising its full potential. While it has strengthened inter-agency relationships and trust, its purpose has become diffuse, with limited prioritisation, accountability, and agility. Participants highlighted a need for sharper focus, clearer ownership, and improved responsiveness to systemic risks.

The report presents two preferred future-state options, each reducing resource demands relative to the status quo:

1. Taskforce model – a proactive coordination structure where CoFR identifies system-wide vulnerabilities and responds through short-term, purpose-built taskforces led by member agencies. This approach emphasises agility, accountability, and strategic oversight
2. Selective engagement model – a lighter, reactive framework where CoFR intervenes only when bilateral coordination fails or emerging risks require joint action. A small secretariat facilitates engagement and horizon scanning but avoids ongoing programme management.

Both models represent a shift from standing committees and Communities of Practice toward purpose-driven, time-bound collaboration, requiring cultural change, clearer expectations, and shared leadership. The review concludes that whichever model is chosen, success will depend on collective commitment, clarity of purpose, and effective implementation planning to deliver greater focus, responsiveness, and system-wide impact.

More information is on the Council of Financial Regulators website.