Supermarkets and service providers could be caught up in regulations designed to prevent another finance company collapse if Reserve Bank recommendations are followed through, a top lawyer has warned.
The Reserve Bank yesterday released its review of the prudential regime governing non-bank deposit takers.
The regime was set up in 2008 amid the collapse of the finance company sector in which 45 companies failed, putting at risk nearly $6 billion worth of investors' money.
The review makes seven key recommendations including dropping part of the definition for non-bank deposit takers.
At present a person is only included in the regime if they offer debt securities to the public and carry out the business of borrowing and lending money. The change would cut the first part of the definition and make carve-outs to create exemptions for the second part.