Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


CORRECT: Unlisted mulls FMA licence as deadline looms

CORRECT: Unlisted mulls FMA licence as deadline looms, NZX rival gets exemption

(Fixes Craig Foss's title in fourth paragraph)

By Suze Metherell

July 14 (BusinessDesk) - Unlisted, the share trading platform run by Armillary Private Capital, is mulling an application to be a registered market or seek to be exempted ahead of a Dec. 1 rule change after rival NZX gained a ministerial exemption.

Under the Financial Markets Conduct Act, which replaces 36-year-old old Securities Act, the unregistered market will either need to apply for a licence from the Financial Markets Authority, seek an exemption from market rules, such as continuous disclosure requirements or shut down.

Unlisted currently requires minimal disclosure, keeping costs low for the 18 securities that trade on its platform. In the past 20 working days, it recorded 39 traded amounting to 253,519 shares, according to its website.

"The board has been reviewing the options - apply for a licence or an exemption, deconstruct or reconstruct the market or just shut it down and sell up," said David Wallace, director at Armillary. "We have determined that we're going to explore an application to the minister either seeking an exemption for our market or a licence with specific exemptions."

Earlier this month the NZX's new market received an exemption from commerce minister Craig Foss, allowing New Zealand's only registered stock market operator to run its proposed new market with less onerous disclosure obligations, reducing costs for issuers in a bid to attract small to medium sized businesses to list.

The new market, which will ultimately replace the NZ Alternative Market, will have its own website with branding distinct from the NZX and a pop-up warning where investors are asked to acknowledge the market has fewer rules than other NZX markets. Unlisted's website has a pop-up warning.

The ministerial exemption will apply under the Securities Act until December, when the Financial Markets Conduct Act comes into effect. Cabinet has agreed to enact regulations to allow the exemption under the new law. NZX must now satisfy the Financial Markets Authority that the market's rules will support the alternative disclosure requirements, before launching the new board.

Wallace said NZX's new market probably wouldn't be a threat to Unlisted's status, and that the ministerial exemption had given them guidance on where to head with the unregistered market.

"Yes it is a direct competitor but I think our focus is on a slightly different set of companies than maybe that market is set up to service," he said.

The cost of maintaining a licence was the main deterrent for seeking one from the FMA, Wallace said. The operator pays for the annual review by the regulator as well as absorbing costs in monitoring and implementing the rules, which could become a significant cost for a small business such as Unlisted, he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news