12 October 2011

FMA welcomes Financial Markets Conduct Bill

The Financial Markets Authority has welcomed the introduction into Parliament of the Financial Markets Conduct Bill.

Chief Executive Sean Hughes said the bill was a fundamental plank in the Government’s major regulatory law reform programme.

“FMA's resources have been fully occupied in its first six months on the reviews into and investigations of legacy finance company collapses, as well as implementation of financial adviser reforms and building new organisational capability,” Mr Hughes said.

“However we are confident FMA will be able to discharge the reforms proposed.

“This bill will significantly extend the scope of activities regulated by FMA, for example, to include fund managers, independent trustees of superannuation schemes, derivatives dealers, and peer-to-peer lenders.

“Increasing FMA’s regulatory oversight of market players is an important part of restoring investor confidence because a greater range of entities will be licensed and monitored by us, and we will be actively enforcing the rules.”

FMA encourages all financial markets participants and stakeholders to study the exposure draft of the bill and to make submissions, Mr Hughes said.

ENDS

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