Market watchdog gives NZX favourable report
WELLINGTON: The Financial Markets Authority is very happy with the way NZX is tracking as the country’s only licensed stock market operator, which has lifted its game under the market watchdog’s regulatory regime.
In its annual review of the Wellingtonbased operator, FMA gave a favourable report.
It said NZX met its obligations by ensuring the market worked in a fair, orderly and transparent manner, there were adequate systems to ensure participants’ disclosures, it managed commercial conflicts of interest effectively, it monitored conduct and enforced compliance, and it was appropriately resourced.
‘‘From when I first started doing these reports, and when at NZX myself, there has been a definite improvement in terms of the overall framework under which the NZX carries out its operations,’’ FMA director of capital markets Garth Stanish told BusinessDesk. ‘‘Things like the regulatory governance committee and conflicts committee are clear improvements from what’s come before.’’
Mr Stanish was head of issuer regulation and an acting head of regulation at NZX before joining the FMA.
NZX got its first clean bill of health from the FMA in its 2015 review and a subsequent memorandum of understanding between the two entities led to the desired alignment.
Mr Stanish said there had been ‘‘isolated instances’’ of concern but the stock market operator was tracking well.
‘‘We’re very, very happy with the framework within [which] they exercise their discretions.’’
The FMA review encouraged NZX to ensure all regulatory decisions were reviewed by the regulatory governance committee, and said the committee should not rely solely on summaries and responses provided by management.