Section 28A of the Fair Trading Act - FINZ Position
21 November 2016
Sector issues have been at the forefront of our work at FINZ over the past few months and Section 28A of the Fair Trading Act top of the list. The excellent relationship between FINZ and the PFRA has resulted in a collaborative response, to ensure we get the best result for the public of New Zealand. A huge thanks must go to Karen Ward, PFRA CEO who has driven this project right from the beginning when the Act was passed into law by Parliament in 2012 (by the Fair Trading (Soliciting on Behalf of Charities) Amendment Act 2012).
Section 28A provides that the Governor-General may, on the recommendation of the Minister of Commerce, make regulations, in relation to fundraisers making requests for charitable purposes. No regulations have yet been promulgated, but in December 2015, the Ministry of Business, Innovation and Employment (MBIE) issued some draft regulations for consultation.
Prescribing an information disclosure regime was seen as a way of increasing transparency and public accountability of third party fundraisers and, in turn, making the public more confident about donating to charitable causes.
The PFRA/FINZ’s request to Minister Paul Goldsmith is that sector leaders raise awareness of the work of PFRA and FINZ, as well as the realities of modern fundraising practices, including the fact that is a long-term actuary-based model. In addition that the current framework of self-regulation be permitted sufficient time to demonstrate that it can and indeed does adequately address concerns.
This is an ongoing conversation with the ministry and both PFRA and FINZ will be keeping members and stakeholders informed of progress and outcomes.
Class 4 Gambling is also currently being reviewed by the department of Internal Affairs and you can read FINZ’s submission here.