Proposal to recommend that HVCS is designated

Overview

We are proposing to recommend that the Minister of Finance designates the High Value Clearing System (HVCS). This proposal is made under the Financial Market Infrastructures (FMI) Act 2021. 

The HVCS is a pure payment system operated by Payments NZ and has not been regulated before. The HVCS processes large payments that cannot be reversed, such as house settlements. 

Why we are making this proposal 

Designating the HVCS would allow the Reserve Bank of New Zealand – Te Pūtea Matua to regulate and supervise the HVCS. This would require the operator of the HVCS to comply with the Act and FMI Standards. Designating the HVCS would also give stronger legal protections to its rules. 

We are making this proposal because we believe the HVCS is important to New Zealand’s financial system. Any trouble with the HVCS could impact the ability of New Zealanders to make payments.  

We supervise FMIs to: 

• make sure they are operating in a way that promotes a sound and efficient financial system
• reduce the damage that could arise from a failure of an FMI or other financial system distress 
• promote confident, informed, fair, efficient and transparent financial markets. 

How to have your say 

We would like feedback on this proposal from: 

• Payments NZ and the participants of the HVCS. This includes indirect participants of the HVCS, for example those that have an arrangement with either the HVCS, its operator or participants.
• Any other stakeholders of the HVCS. 

Please email your feedback to fmiconsultation@rbnz.govt.nz. Submissions will close at 5pm on 30 September 2025.

We will decide whether to proceed with our proposal after receiving and considering all feedback. The Minister of Finance ultimately decides whether to designate the HVCS.