NZX released the original discussion document in May which outlined the proposed new structure for the legal and regulatory framework. This framework saw compliance and enforcement brought in house and a separate and independent body established to oversee disciplinary matters. This structure remains largely unchanged in the final proposal. The rules for the NZX legal and regulatory framework are called NZX Discipline, and can be found on the NZX website at www.nzx.com/regulation.
NZX received a number of submissions, focusing mainly on how matters would be executed within the proposed framework. This feedback has been taken into account in the drafting of the final rules, along with feedback from subsequent consultation with both the submitters and other industry experts.
"We're confident that we've developed a more consistent, fair and transparent structure for this market," said Mark Weldon, NZX CEO. "Our key objectives were to create an environment that would deliver benefits to all market participants, enhance investor confidence and strengthen market integrity."
NZX is also proposing changes to several NZX Listing Rules designed to further enhance market efficiency and bring the rules into line with both current practices and overseas standards.
Key among these changes is the introduction of shareholder approval for director retirement packages (Listing Rule 3.5.2(a); modification of the requirement for certain Listing Rules to be included in an Issuer's constitution (Listing Rule 3.1.1); the need for appraisal reports to include the Appraiser's reasons for why the transaction is fair (Listing Rule 1.2); the introduction of a ceiling and floor on remuneration packages that are material transactions with a Related Party (Listing Rule 9.2.2(d); and the removal of a need for an organising broker for the quotation of securities that have already been listed (Listing Rule 5.2.1) amongst others. A full table of proposed changes can be found on the NZX website at www.nzx.com/regulation.
"When we took a broad look at the existing Rules, we saw that there were a number of inefficiencies and redundancies that could easily be removed to benefit the market as a whole," said Weldon.
The proposed new NZX Listing Rules are out for public submission until 9 January 2004. All submissions should be made in writing to:
Elaine Campbell
General Counsel
New Zealand Exchange Limited
PO Box 2959
Wellington
or to elaine.campbell@nzx.com.
Once all submissions have been received they will be reviewed and feedback incorporated where appropriate. NZX aims to have the final draft to the minister for disallowance by January 2004.
The proposed new NZX Discipline Rules governing the legal and regulatory framework can be found on the NZX website at www.nzx.com/regulation, along with a summary of the submissions received to date and the additional miscellaneous Listing Rule changes.
