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

 

FMA chief executive looks forward to long-term benefits

FMA chief executive looks forward to long-term benefits of new regulation

The Financial Markets Authority (FMA) chief executive Rob Everett has told a trans-Tasman audience that it will be four to five years before New Zealand sees the full economic and business benefits of the new financial services regulatory regime.

Mr Everett was delivering a keynote address to the Banking and Financial Services Law Association (BFSLA) annual conference, in Brisbane.

He told the conference New Zealand was shifting from securities law to modern conduct regulation, following the implementation of the Financial Markets Conduct Act 2013, last year.

Mr Everett said the shift to the new regulatory arrangements was entering a new phase, following the initial round of change and the early-stage results.

The full range and depth of economic and business benefits would come following a sustained period of adaptation by the FMA, firms, professionals, and investors, lasting up to five years.

Mr Everett said that over the previous 12-18 months, improvements or progress under the new regulation included:

• the new licensing and supervision arrangements, under the FMC Act, bedding-in, following phase 2 of the Act taking effect in December 2014

• swift uptake of the new same-class offers, available under the FMC Act, with $1.2 billion raised by firms using same-class provisions

• crowd funded-equity platforms licensed and already raising $12 million dollars for projects and offers

• NZX’s new emerging firms market – NXT – licensed

• extensive constructive consultation - between firms and professionals, and the FMA - as the details of the new regulation are fine-tuned, so they work practically.

Mr Everett said that progress reflected legislation that was widely supported by financial services firms, professionals in law and audit, and political support for the arrangements.

He said emerging challenges, which the FMA is seeing now – and which require longer-term change on the part of regulated businesses and the FMA - include:

• firms embracing the full extent of cultural change - in their governance, systems, and practices - that is necessary to support conduct regulation

• the leading role for senior managers, and boards, in interpreting and implementing regulation for the businesses they run

• bringing firms that were previously unregulated, or partly-regulated, into the new arrangements, with the depth of change that is required of them

• commentators and professionals recognising that there would be fewer courtroom cases - which were a hallmark of the Securities Act - as the FMA used the wider range of non-court remedies that are available to it, including the remedies aimed at preventing things going wrong in the first place

• deepening investors’ understanding of new types of markets, including those like NXT – and, separately, new products like crowd-funded equity - which bring different types of risk relative to those that have been available in New Zealand

• re-defining the perimeter of regulation, where the FMA’s mandate stops, so that investors and firms understand what falls under regulation, and what is outside it.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:

Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>

ALSO:


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: