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NZX Discipline replaces the market surveillance panel, the Complaints Committee and Disciplinary Committee. The Appeal Panel provides an independent right of appeal from NZX Discipline.
"In establishing NZX Discipline and the Appeal Panel, NZX sought to provide a more consistent, fair and transparent structure for listed issuers and brokers," said Elaine Campbell, Head of Regulatory and Public Policy. "Our key objectives were to create an environment that would deliver benefits to all market participants, enhance investor confidence and strengthen market integrity. We feel confident that with input from all major participants, we have achieved these objectives," said Campbell.
The purpose of the NZX Discipline Rules, and the bodies established under those rules, is to strengthen confidence in the markets which NZX operates. NZX Discipline is a quasi independent body that determines whether there has been a breach of the rules that apply to the markets NZX operates and the participants in those markets. NZX Discipline also determines referrals made by applicants for waivers and rulings from decisions made by NZX Regulation.
NZX Discipline will have up to 22 members, of whom at least two must be currently practicing barristers or solicitors of at least 7 years' practice, at least one of whom shall be a Trading Participant and one of which shall be Delivery and Settlement Participant, two company directors of Issuers, 11 members of the public (who shall not be Market Participants or representatives of NZX) and up to 5 NZX representatives. Appointments to NZX Discipline must be confirmed by the Securities Commission.
In addition to NZX Discipline, the Appeal Panel is also being established to hear appeals from decisions made by NZX Discipline. Its purpose is to provide an independent right of appeal from decisions of NZX Discipline. The Appeal Panel is completely independent of NZX, NZX Discipline and the market. It is for this reason that NZX is seeking applicants who are no longer active or participating in the market. Appointments to the Appeal Panel are made by the Securities Commission based on the nominees put forward by NZX.
For further information on becoming a member of either NZX Discipline or the Appeal Panel, please contact Elaine Campbell, Head of Regulatory and Public Policy on 04 495 2821. Applications may be submitted in writing to Ms Campbell (New Zealand Exchange Limited, 2 Hunter Street, Wellington or Elaine.campbell@nzx.com) no later than 5pm on Wednesday, 21 April 2004. NZX will also be publishing full details of requirements for each on the website at www.nzx.com/regulation.
