MR No. 2014 – 021
30 June 2014
The Financial Markets Authority (FMA) today published its annual General Obligations Review of NZX.
The FMA’s report confirms that NZX met its obligations, under the Securities Markets Act 1988, to ensure that its markets were fair, orderly, and transparent. The review covered the period January – December 2013.
The report lists 11 actions that NZX will take, in order to achieve further improvements in its arrangements for operating the markets.
NZX is New Zealand’s only registered exchange and the front line regulator for its markets. The 2013 report is the third General Obligations Review of NZX by the FMA.
The Chief Executive of the FMA, Rob Everett, said the review process had been rigorous, involving in-depth reviews of NZX’s resources, policies, and practices. This is notwithstanding FMA’s close involvement with, and monitoring of, NZX day-to-day.
Mr Everett said that the FMA and NZX have agreed that NZX will undertake a number of actions, some of which are already underway. This will address issues discussed during the review about NZX’s arrangements for managing conflicts, monitoring conduct, and enforcing compliance.
“NZX has given top priority to its regulatory obligations, and the FMA has seen substantial improvements from the previous report,” Mr Everett said. “I’m pleased we have been able to agree a schedule of tangible and actionable improvements this year.
“Along with the improvements that NZX has already implemented, I believe we have the appropriate degree of reassurance - on regulatory compliance - that investors, firms, and the Government expect of New Zealand’s only registered exchange.”
Read the NZX General Obligations Review report here.
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Arrangements for handling conflicts
Arrangements for monitoring conduct
Arrangements for enforcing compliance