The Financial Markets Conduct Act 2013 (FMC Act) lays the groundwork for us to provide high-quality regulation in capital markets and financial services here in New Zealand. It is the largest statutory change in our financial markets in at least 30 years, and ensures regulation keeps pace with investor and business expectations.
The FMC Act gives us a much bigger mandate in our role as conduct regulator, and brings extensive new responsibilities in licensing, supervision and enforcement. As a result of this changing landscape, everyday New Zealanders can expect to experience the facilitation and promotion of fair, efficient and transparent financial markets.
The purpose of the FMC Act is to promote and facilitate the development of fair, efficient and transparent financial markets, and to promote the confident and informed participation of businesses, investors and consumers.
The FMC Act works to reform the regulation of financial conduct. It governs the way financial products are offered, promoted, issued and sold. This includes the on-going responsibilities of those who offer, issue, manage, supervise, deal in and trade financial products. The FMC Act also regulates the provision of certain financial services.
The changes introduced by the new legislation play a key role in building confidence in our markets, by providing better information for investors, as well as setting clearer rules for companies wanting to raise capital.
In 2010 the Government introduced the first in a series of discussion documents to comprehensively review and reform New Zealand's securities law. The transition to the FMC Act was the last major step of this reform, with the final phase of the transition taking place from 1 December 2014.
The FMC Act responds to recommendations from the Capital Markets Taskforce, the effects of the global financial crisis, and the failure of finance companies.
The FMC Act was launched in two phases:
The FMC Act impacts everyone living in New Zealand in some way, whether you are conscious of it or not. As a result of the changes brought in by the FMC Act and the big-picture vision for our country, a financially healthy New Zealand includes:
Specific features of the FMC Act that you can expect to see in our markets include:
For those who work in the financial markets industry, please visit the FMC Act compliance section of our website for specific details on how the FMC Act impacts you.
Key documents and reports from the Government's review of securities law are available as background information on how the FMC Act was established. Further information is also available on the Ministry of Business, Innovation and Employment's website.
For those people who work in the financial markets industry, there are a range of FMA guides available that provide details on transitions and changes under the new FMC Act.
You can also contact us directly if you have any further questions.
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