Proposal to recommend that HVCS is designated

Results updated 15 Sep 2026

The Minister of Finance has designated the High Value Clearing System (HVCS) on the recommendation of the Reserve Bank. We made our recommendation under the Financial Market Infrastructures (FMI) Act 2021. 

The consultations on our proposal outlined below closed on 30 September 2025, and on 20 March 2026. We have reviewed all the submissions in making our decision.

Read the summary of submission and our responses (PDF, 483KB)

Read the submissions (PDF, 2MB)

See the signed designation notice on the RBNZ website.

Closed 20 Mar 2026

Opened 23 Jan 2026

Contact

fmiconsultation@rbnz.govt.nz

Overview

We have undertaken the process to make a recommendation to the Minister of Finance to designate the High Value Clearing System (HVCS). The recommendation was made on our own initiative under the Financial Market Infrastructures (FMI) Act 2021. Before we made a recommendation, we consulted on our proposal to make the recommendation as set out below.

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, and is a critical step in the end-to-end payments process. 

The consultations on our initial proposal closed 30 September 2025. We sought further submissions on the costs of compliance and HVCS rules in the open letter to Payments NZ on 23 January 2025.

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. 

Next steps 

Submissions closed at 5pm on 20 March 2026.

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.

Read the open letter to Payments NZ seeking further submissions (consultation closed)

Download the letter to Payments NZ (PDF, 182KB)

Read the initial proposal document (consultation closed)

Download our proposal to recommend the designation of the HVCS (PDF, 682KB)