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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news