NZSE is responsible and accountable by law for the regulation of market intermediaries and listed issuers. NZSE considers that its current construct, which involves seven different NZSE panels and committees, is flawed. The current structure does not provide NZSE with sufficient control over the interpretation or enforcement of NZSE Rules. There is also little consistency between the treatment of listed issuers and brokers with the resulting duplication being both overly time consuming and costly for all market participants.
Mark Weldon, NZSE's CEO, said the aim of the review is to strengthen NZSE's role as an effective market regulator by introducing a simplified and consistent new structure with a high degree of accountability and full transparency. The proposed structure would see two main changes. NZSE would bring compliance in-house, and would also introduce a single new enforcement body dealing with enforcement across both listed issuers and market intermediaries. This body would be a standing group of experts, who would be utilized on a case-by-case basis, chosen for strict independence from each person and issue being investigated. Each case would also involve some NZSE decision-making.
"It is critical to us that the market has confidence in the NZSE's ability to enforce and punish non-compliance. This review, like many NZSE has undertaken in the last six months, will put in place the appropriate structure for us to deliver that."
Simon Allen, NZSE's Chairman, said that, moving forward, NZSE will work with its existing compliance and enforcement bodies to ensure a smooth transition to the new structure. NZSE recognises and acknowledges the work performed by its existing compliance and enforcement bodies and NZSE deeply appreciates their full support and confidence throughout the restructuring process. A detailed proposal describing the new structure will be released in the next two weeks. A period of public consultation will follow before the new structure is formally presented to the appropriate authorities for approval.
