Parata Hekia: Auditor Regulation Bill Financial Reporting Amendment Bill — Third Readings 
Text is incorporated into the Bound Volume 
Parata Hekia: Auditor Regulation Bill Financial Reporting Amendment Bill — Third Readings 
[Sitting date: 11 May 2011. Volume:672;Page:18622. Text is incorporated into the Bound Volume.] 
Hon HEKIA PARATA (Minister for Ethnic Affairs) 
 on behalf of the  
Minister of Commerce 
: I move  
That the Auditor Regulation Bill and the Financial Reporting Amendment Bill be now read a third time 
. Members should consider the Auditor Regulation Bill within the broader context of the Government’s package of financial market reforms designed to restore investor confidence in our financial markets. Investors need to know that the practitioners charged with carrying out independent audits of financial statements prepared by banks listed issuers and other entities that accept large amounts of money from the public are highly qualified skilled and experienced. This is what the Auditor Regulation Bill seeks to do.  
The bill will reserve financial sector audits for the top members of the auditing profession within the major accounting firms. Following enactment there will be a transitional period before the Auditor Regulation Bill comes into force. The New Zealand Institute of Chartered Accountants will need to establish new systems to carry out its new statutory responsibilities. The Financial Markets Authority will need to establish a system for monitoring and reporting on the adequacy and effectiveness of the New Zealand Institute of Chartered Accountants’ regulatory systems and processes. The Registrar of Companies will need to establish a register of licensed auditors and registered auditing firms. I look forward to the Financial Markets Authority the Registrar of Companies and the New Zealand Institute of Chartered Accountants working together to bring these much-needed reforms into place in a timely manner.  
I turn now to the Financial Reporting Amendment Bill. This bill provides for the reconstitution of the Accounting Standards Review Board as the External Reporting Board from 1 July 2011. It also provides for the consolidation of all financial reporting auditing and assurance standard-setting within the External Reporting Board. These responsibilities are currently split between the New Zealand Institute of Chartered Accountants and the Accounting Standards Review Board with the New Zealand Institute of Chartered Accountants holding most of the responsibilities. The changes are being made for two main reasons: firstly placing the responsibilities within a single entity will make it easier to develop and implement coordinated strategies and programmes and secondly it is essential that the setting of financial reporting standards is seen to be independent of the interests of the profession as per international best practice.  
I pay tribute to the Accounting Standards Review Board and the New Zealand Institute of Chartered Accountants for their significant contributions to these reforms. The Minister was pleased to announce recently that all current members of the Accounting Standards Review Board will become inaugural members of the External Reporting Board along with two additional members. The Accounting Standards Review Board has been working through the process of moving from a virtual entity that has no staff or premises to an entity that will have both. I also thank the Institute of Chartered Accountants for the thoroughly professional manner in which it has continued its standard-setting activities throughout the transition.  
To conclude the passing of the Auditor Regulation Bill and the Financial Reporting Amendment Bill will contribute to the strengthening of the financial reporting system in New Zealand and will bring that system within the range of international norms. I commend these bills to the House.