Financial Markets Authority (New Zealand)
 | |
| Agency overview | |
|---|---|
| Formed | May 1, 2011 |
| Preceding agency | |
| Jurisdiction | New Zealand |
| Headquarters | Wellington, New Zealand |
| Agency executives |
|
| Website | FMA New Zealand |
The Financial Markets Authority (FMA) is the New Zealand government agency responsible for financial regulation. It is responsible for regulating all financial market participants, exchanges and the setting and enforcing of financial regulations.
History
The authority was established on the 1st of May 2011 as part of the Financial Markets (Regulators and KiwiSaver) Bill which was passed by the New Zealand parliament on the 7 April 2011. It was established in a wake of criticism over the failure of the previous regulatory regime to halt the failure of a large number of finance companies and to stem investor losses in the period between 2006 to 2010. It was introduced by Commerce Minister Simon Power as a "super regulator" whose purpose was to restore investor confidence battered by the finance company meltdown and global financial crisis. "This move is at the centre of the Government's drive to restore the confidence of mum and dad investors in our financial markets," he said.[1]
The Authority took over the functions of the Securities Commission of New Zealand and Government Actuary which were disestablished, and consolidates other regulatory functions which were fragmented across the Ministry of Economic Development (New Zealand) the Companies Office and its National Enforcement Unit.[2][3]
Structure
The FMA is controlled by a board appointed by the Minister of Commerce and run by a chief executive. In 2011, Simon Allen was appointed as chairman, Sean Hughes as chief executive and the board was made up of Shelley Cave, Colin Giffney, Mary Holm, Murray Jack, James Miller, Justine Smyth, Michael Webb, and Mark Verbiest, plus three associate board members Bruce Sheppard, Rebecca Eele, and Arthur Grimes. Rob Everett was appointed as its new Chief Executive, effective 3 February 2014.[3]
Priorities
The FMA's official website says its key statutory objective is "to promote and facilitate the development of fair, efficient, and transparent financial markets" and that it "will use the full range of its enforcement powers, targeting conduct that presents the greatest likelihood of harm to the function of open, transparent and efficient capital markets."[4] Since it was established in 2011, it has been involved in legal action against Bridgecorp, KA Trustee Ltd, Perpetual, Hanover Finance, Lombard Finance, Sean Wood, Nathans Finance, Bernard Whimp and David Ross. [5]
See also
References
- ^ "One financial regulator to rule them all". Financial Markets Authority. April 7, 2011.
- ^ Minister of Commerce New Zealand (7 April 2011). "New financial watchdog to be up and running in three weeks". Securities Commission of New Zealand.
- ^ a b New Zealand government (7 April 2011). "New Financial Watchdog to Be Up and Running in Three Weeks". scoop.co.nz.
- ^ FMA Enforcement Policy, FMA website
- ^ FMA Court Decisions of Interest, FMA Official website