We believe this is an important and significant shift forward in strengthening the New Zealand regulatory environment, and one that will ultimately serve to benefit both listed issuers, and investors in New Zealand's capital markets.
The two organisations objectives in entering the MOU were to:
- Optimise the regulatory environment of New Zealand's securities markets, through increased co-operation and greater process transparency
- Promote investor confidence by:
- ensuring well regulated markets
- efficient surveillance and enforcement
- unnecessary duplication
- Develop sound relationship principles
- Facilitate ongoing liaison between both parties
The media briefing today is also intended to clarify the role of the Securities Commission as statutory regulator, primarily concerned with breaches of the law with relation to insider trading, substantial security holder disclosure, continuous disclosure and disclosure by directors. In addition, the Securities Commission has a role as overseer of NZSE, as a registered exchange.
NZSE's role is, by comparison, one of a front-line regulator. Our primary responsibility is in ensuring the compliance with and enforcement of NZSE's Conduct Rules, which contractually bind NZSE and listed issuers and brokers. We do this by taking an active role in surveillance of the market, and take responsibility for referring any likely breaches of law to the Securities Commission for investigation.
