29 Jan 2015

NZX and FMA sign MOU

7:49 am on 29 January 2015

The regulators of the country's capital markets - the Financial Markets Authority (FMA) and the NZX - have signed a memorandum of understanding that sets out how they will work together.

The FMA already has a statutory requirement to annually review the stock exchange operator's performance, and the memorandum allows it to monitor the stock exchange's day-to-day regulatory functions.

FMA CEO Rob Everett said that would help ensure investors could have trust in the capital markets.

"It's important for us to be able to - on an ongoing basis and not just once a year - to really understand what the exchange is monitoring in terms of market activity, what they're looking at in terms of complaints from investors ... [It] gives us an ongoing confidence that they are performing the functions they need to and that we're providing all the support we can," he said.

"It means investors don't just have to wait for a once-a-year review to get some comfort level that everything's as it should be."

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