First Union, which represents about 4,000 financial services sector workers, has written to the Reserve Bank Governor, Financial Markets Authority CEO, and two cabinet ministers raising concerns about an international Trade in Services Agreement (TISA).

The letters follow a WikiLeaks leak of the draft text of the TISA Financial Services Annex. First Union issued a press release last week raising concerns about the draft text released through WikiLeaks, but has now stepped up its opposition through the letters.

In letters to Reserve Bank Governor Graeme Wheeler, FMA boss Rob Everett, Finance Minister Bill English and Commerce Minister Craig Foss, First Union general secretary Robert Reid says the union has studied legal analysis of the leaked text and is "extremely concerned" it would impose a standstill to financial measures established by a country that are inconsistent with its rules.

"This, we believe, would mean that current financial regulations will be the most restrictive of financial services that a government would be allowed to employ, and that states would be encouraged to bind in new liberalisation beyond their status quo," Reid wrote.

"It is our view that this agreement is designed to lock in the light-handed regulatory approach that brought us the global financial crisis. We are concerned the agreement could hamstring the ability of the FMA, the Reserve Bank and Parliament itself in ensuring adequate regulatory control over our financial system. A lack of effective regulatory sovereignty over our financial system could threaten NZ investors' security, not to mention the jobs of our 4,000 members working in the financial sector," wrote Reid.

Individually to Wheeler he added; "The TISA agreement would undermine the Reserve Bank's core function of promoting a sound and efficient financial system. Please inform us whether you have had any involvement or briefing from the Ministry of Foreign Affairs and Trade (or any other government agency) on the TISA negotiations. Please also inform us of the Reserve Bank's position on this agreement."

To Everett he said; "As the regulator of financial markets you have committed to creating a 'risk-based' approach, however as stated the TISA agreement would undermine this commitment. Please inform us whether the FMA has had any involvement or briefing from the Ministry of Foreign Affairs and Trade (or any other government agency) on the TISA negotiations. Also, please inform us of the FMA's position on this agreement."