Industry Regulations

Regulations are the legals involved in making sure your business complies with the law. This includes regulations involved in registering a company, managing employees, privacy regulations, trade marks, and consumer law. These general regulations impact all businesses, and we talk about them throughout this guide.

However, specific industries can have specific regulations too. This chapter is about how industry-specific regulations can impact your business.

Industry regulations

Many industries have specific regulations that apply to businesses who operate within them. Regulations can be both region-based (in that they only apply to particular New Zealand regions) or they can apply New Zealand wide, and they may sometimes require that certain businesses have a licence or permit in order to operate.

For example:

• Businesses that serve alcohol may require a liquor licence from the District Licensing Committee.
• Businesses that provide therapeutic goods may be subject to Medsafe requirements.
• The building and construction industry must adhere to the Building Act 2004 and the Building Code.
• Financial services businesses may be regulated by the Financial Markets Authority (FMA).
• Telecommunications businesses must comply with the Telecommunications Act 2001.
• Manufacturing businesses need to comply with product safety laws and standards.

If regulations specifically apply to your industry, it’s really important that you are on top of them, as they may have a significant impact on your business operations or your business model and can be crucial for your business’ success.

To give you an idea of how industry regulations can affect businesses, we’ve set out below a couple of examples of the regulations that apply in different industries.

Accommodation and food industry

If you run a hotel, motel, restaurant, cafe, bar or similar business, there are a range of industry-specific regulations that may affect the way you operate.

Some of the key regulations include:

• Competition and Consumer Act 2010
• New Zealand Consumer Guarantees Act 1993
• National trade measurement legislation
• Local council liquor licensing
• State restricted trading days
• the Food Standards Code
• Local council-based licenses and permits (which affect, for example, the signage you can use, the music you can play, the days you trade and the way you manage waste).

Finance and insurance services

If you run a business that takes deposits, issues shares, provides insurance or superannuation products, or otherwise undertakes financial service activities there are a range of industry-specific regulations that may affect the way you operate.

Some of the key regulations include:

• Financial Markets Conduct Act 2013
• Anti-Money Laundering and Countering Financing of Terrorism Act 2009
• Credit Contracts and Consumer Finance Act 2003
• Reserve Bank of New Zealand Act 1989 for banks
• Insurance (Prudential Supervision) Act 2010 for insurers
• Financial Advisers Act 2008 for financial advisers

Manufacturing industry

If you run a business that manufactures food, beverages, textiles, leather, clothing footwear or other similar products there are a range of industry-specific regulations that may affect the way you operate.

Some of the key regulations include:

• Competition and Consumer Act 2010
• New Zealand Consumer Guarantees Act 1993
• Anti-dumping laws
• Food Standards
• Medsafe for Therapeutic Goods
• National trade measurement legislation
• Hazardous Substances and New Organisms Act 1996
• Food standards (e.g. the Food Safety Standards)
• Product safety standards
• Packaging and labelling codes and standards
• Licences and permits (e.g. a licence to manufacture therapeutic goods)

In conclusion…

In this chapter we’ve learned about what industry-specific regulations are and explored some examples of regulation that affects some different industries.

It is a good idea to research what regulations apply in your industry so you can make sure your business operations are compliant and your business model is legal. If you’re confused by all the different industry regulations, you should seek specialist legal or professional compliance advice.