Fayval Williams defends $500m FSC drawdown amid investment rule changes

Finance Minister Fayval Williams has defended the Government's $500 million drawdown from the Financial Services Commission, saying the move comes as changes are being advanced to widen investment options and unlock more long-term financing.

Speaking at a post-Cabinet press briefing this morning, Williams said the first step in easing private asset limits will take effect on July 1, 2026, when the cap is to move from 5 per cent to 7.5 per cent.

She said the adjustment would release "meaningful long-term capital for corporate and project financing" and that the Government remains on track to lift the limit to 10 per cent on April 1, 2027, subject to any regulatory position.

Williams also said updates are being made to insurer investment eligibility rules to allow broader access to sound domestic corporate debt. She indicated that the proposed amendment is being prepared, with the draft expected to be ready by the end of the week.

The issue was raised in Parliament on Tuesday by Opposition spokesman on finance Julian Robinson, who questioned the minister about the decision. Robinson challenged the timing of the drawdown, referencing the FSC's own finances and a recent announcement that some regulatory fees would be increased.