By: Antony Holden, Caroline Laband, Michael Cavanaugh and Sophia Lynch

We’re excited to share our first update for 2026 in the D&O, Financial Institutions and Regulatory environment.

The aim of these regular updates is to help you stay ahead of fast-moving changes. This snapshot distils the decisions, enforcement action and reform momentum that we think might matter most.

We hope this information helps you anticipate risk, sharpen governance and act early to avoid any issues.

In this issue

• ASB admitted to misleading customers and the New Zealand High Court imposed a penalty of NZ$1.2 million.
• The Modern Slavery Bill has advanced via bipartisan process and introduces mandatory requirements for companies to report on modern slavery risks in supply chains or risk fines.
• The banking class action against ASB and ANZ had the settlement with ASB approved, and summary judgment entered against ANZ, for breaches of the Credit Contracts and Consumer Finance Act.
• The Australian Federal Court found senior executives of The Star Entertainment Group breached their duties by failing to manage and escalate serious regulatory risks.
• The New Zealand High Court ordered Aramex and GoSweetSpot to pay NZ$1.225 million in penalties after Commerce Commission findings of cartel conduct.
• The New Zealand Court of Appeal dismissed the Port of Auckland chief executive’s appeal of his conviction and fine for H&S breaches following the death of a stevedore.
• The SFO’s appeal, to convict CBL’s CEO and CFO, was dismissed by the New Zealand Court of Appeal.
• The Government will amend the Climate Change Response Act to block current and future climate lawsuits, prioritising legislative control and business certainty.

The detail

Fair Dealing breaches by ASB

• ASB admitted misleading customers by failing to consistently apply promised benefits, including multi-policy insurance discounts, and breaching the Fair Dealing provisions of the FMCA.
• More than 25,000 customers were affected, with ASB refunding approximately NZ$4.7 million after self-reporting to the FMA.
• The New Zealand High Court imposed a penalty of NZ$1.2 million on ASB Bank for historic breaches of the Fair Dealing provisions of the FMCA.
• The penalty underscores regulatory expectations that banks maintain robust systems to ensure fair customer treatment.

Modern Slavery Bill

• National and Labour advanced the Modern Slavery Bill using a new bipartisan process after ACT declined support.
• The Bill requires large companies (over NZ$100 million in revenue) to report modern slavery risks in their supply chains.
• It introduces public disclosure, director liability, fines up to NZ$200k, civil penalties up to NZ$600k, a public register and an expanded role for the Human Rights Commission.
• Reporting is mandatory, non-compliance is an offence, annual Ministerial reporting is required and the regime includes regular legislative review and consideration of an independent Anti-Slavery Commissioner.

New Zealand High Court approved ASB’s settlement of class actions

• In Simons v ANZ Bank New Zealand/ASB Bank Ltd [2026] NZHC 11, the New Zealand High Court approved ASB’s NZ$135.6 million settlement of the class action against ASB for breaches of the Credit Contract and Consumer Finance Act.
• Settlement funds cover funder and legal costs and payments to representative plaintiffs and eligible class members, with entitlements based on loan timing relative to 6 June 2015.
• The Court found the settlement fair and reasonable, noting minimal opposition and ordered independent oversight, quarterly reporting and confidentiality protections.
• ANZ continued its defence of the class action.

Summary Judgment against ANZ for the same class action

• In Simons v ANZ Bank New Zealand Ltd [2026] NZHC 1154, the New High Court found ANZ liable for breaches of the Credit Contract and Consumer Finance Act for loan disclosure errors caused by a coding mistake.
• About 17,000 customers were affected by understated loan balances and undercharged interest.
• The Court held the breach was not trivial and harmed customers, despite ANZ already compensating over NZ$35 million.
• ANZ faces potential total liability of up to $125 million and is considering an appeal.

Australian Securities and Investments Commission v Bekier [2026] FCA 196

• In AISC v Bekier [2026] FCA 196, the Australian Federal Court found senior executives of The Star Entertainment Group breached their duties by failing to manage and escalate serious regulatory risks.
• ASIC’s case concerned governance failures relating to junket dealings (including Suncity) and misuse of China UnionPay cards despite repeated warnings.
• The Court held that executives, including the CEO and Chief Legal and Risk Officer, breached s180(1) (the Australian equivalent to s134 Companies Act) by providing incomplete or understated information to the board.
• The decision confirms that failing to fully inform the board of material regulatory risks can itself constitute a breach of duty.
• Non-executive directors were not liable, with duties assessed based on information reasonably available and the expectation of an enquiring, but management reliant, board.
• Read our Australian colleagues’ summary of the judgment here.

Aramex and GoSweetSpot fined NZ$1.225m following Commerce Commission cartel investigation

• The New Zealand High Court ordered Aramex and GoSweetSpot to pay NZ$1.225 million in penalties after Commerce Commission findings of cartel conduct.
• Aramex was fined NZ$700,000 for customer allocation and price fixing and GoSweetSpot NZ$525,000 for customer allocation, arising from separate arrangements with competitors.
• The Commission also issued warnings to nine other courier operators and reiterated its ongoing focus on competition compliance in the strategically important courier sector.
• The conduct occurred within reseller/carrier arrangements, which the Commission cautioned can heighten cartel risk and the penalties were described as a strong deterrent against similar behaviour.

High Court dismisses appeal in Ports of Auckland worker death case

• The High Court has dismissed former Ports of Auckland chief executive Tony Gibson’s appeal, upholding his conviction over the August 2020 death of stevedore Pala-amo Kalati, who was killed by a falling container at the port.
• Gibson was prosecuted by Maritime New Zealand under the Health and Safety at Work Act for failing to exercise due diligence and was convicted in 2024, fined NZ$130,000 and ordered to pay NZ$60,000 in costs.
• The High Court confirmed he failed to ensure effective health and safety systems, with Maritime NZ saying the decision underscores directors’ obligations to actively manage critical workplace safety risks.

Crown appeal on two CBL charges dismissed

• The Court of Appeal has dismissed the Crown’s appeal on two criminal charges related to the collapse of CBL Insurance.
• These two charges were among the eight originally laid by the Serious Fraud Office against former CBL executives Peter Harris and Carden Mulholland. The High Court has found them not guilty.
• The judges concluded that no legal errors were made in the initial not guilty verdicts for those two charges.

Government blocks current and future climate lawsuits against “big emitters”

• The Government plans to amend the Climate Change Response Act 2002 to remove tort liability for climate-related harm from greenhouse gas emissions.
• The change would apply to both current and future proceedings, effectively stopping cases like Smith v Fonterra.
• It aims to ensure climate policy is managed through legislation (including the ETS), rather than through court-driven litigation.
• The reform is intended to provide certainty for businesses and avoid unpredictable liability exposure.
• Critics argue it weakens accountability and removes a key pathway for affected communities to seek redress.
• The move raises constitutional concerns by overriding ongoing litigation and limiting the courts’ role in developing the common law.

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