Campaign finance rules for local body politicians may be tightened before next year's elections in the fallout from the John Banks anonymous donations affair, which Prime Minister John Key said showed existing law to be "an ass".
Police said last week they found Mr Banks had personally solicited large donations to his 2010 Auckland mayoral campaign from controversial internet tycoon Kim Dotcom and casino company SkyCity but later signed a declaration that the money came from anonymous donors.
However, police said there was insufficient evidence to consider a prosecution for knowingly filing a false return and they were unable to consider other false return charges because complaints were laid too late.
Mr Key said yesterday that in considering Mr Banks' standing as a minister he'd relied on the assurances the Act MP gave him, "which is he complied with the law".
His reading of the police finding backed that up.