The existing regulation of FMIs is limited. Parts 5B and 5C of the Reserve Bank of New Zealand Act establish information-gathering powers in respect of payment systems and the designation regime for settlement systems. However, the regime in Parts 5B and 5C is no longer fit for purpose. For example, in most respects it's a voluntary opt-in regime. It lacks a full suite of supervisory enforcement and crisis management powers. More generally, it's seriously out of step with international standards. The systemic importance of many FMIs and the deficiencies in the existing regulatory regime were recognised by the International Monetary Fund (IMF) when it carried out its Financial Sector Assessment Programme of New Zealand in 2016-17. In the context of that review, the IMF assessed and specifically recommended the adoption of the framework that is reflected in this bill as one of its more high-profile conclusions. 