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


NZX gets almost glowing report from regulator

NZX gets glowing report from Securities Commission, at odds over CEO role

Dec. 23 (BusinessWire) – NZX Ltd.’s performance as a registered exchange was ‘good,’ according to a Securities Commission review covering calendar 2008, though the regulator would prefer the chief executive not have direct oversight of regulatory and commercial functions.

The review found that NZX took appropriate action to ensure listed issuers and market participants were in compliance with listing rules, the commission said in a statement. It also tightened rules relating to back-door and reverse listings, which should benefit investors and maintained an appropriate supervisory role.

The stock and debt market operator also managed conflicts of interest between its commercial and regulatory functions, the commission said in its fourth annual review of the NZX. Still, the commission is at odds with the company on oversight of the two arms of NZX.

“Dual delegation for the supervisory function of NZX to both the Head of Supervision and the NZX CEO is inadvisable, given that the CEO is also responsible for NZX’s commercial functions,” the commission said.

“International best practice is for the commercial and regulatory functions of demutualised exchanges such as NZX to be formally separated to remove the potential for supervisory functions being de-prioritised for commercial reasons,” it said. “The commission notes that NZX has a different view.”

In response to the commission’s statement, NZX said it noted that “no incidents of conflict of interest between NZX’s frontline regulatory role and its commercial operations” had been found.

“On a number of occasions NZX Market Supervision staff made regulatory decisions that had negative commercial impacts on NZX, the exchange operator said in a statement today. This demonstrates that NZX. “can and does place market integrity above any other consideration.”

Still, a perception of conflict of interest does exist, NZX said.

It would be in the market’s best interests that “all enforcement capability is held by a single agency that has the expertise and ability to investigate thoroughly, and apply meaningful penalties, where conduct on all markets fails to meet high standards.”

NZX said the functions of the New Zealand Markets Disciplinary Tribunal, which is independent of the exchange, should also be folded into the new agency.

Shares of NZX were unchanged at $2.31 today and have climbed about 40% this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>

Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>