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‘Agreement signed by NZ regulator, standards body to uphold financial market integrity’

The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has signed a Consultation Agreement with the Financial Markets Standards Board (FMSB).

The Agreement formalises cooperation between the FMA and FMSB. The FMA supports the primary objectives of FMSB to promote fair and effective global wholesale financial markets; to produce clear guidance on how business should be conducted to eliminate or mitigate vulnerabilities; and to promulgate such guidance as widely as possible globally and obtain commitments for its use.

The FMA and FMSB have strong shared interests in maintaining, and where appropriate, improving the operation of wholesale fixed income, currency and commodities markets and this Consultation Agreement underpins their close strategic and working relationship.

While industry standards do not replace obligations under New Zealand law, the development and promotion of good industry standards can complement principle-based laws and drive robust operational practices among market intermediaries. The agreement will facilitate the FMSB’s consultation with the FMA in the development of draft guidance and other publications.

FMA Chief Executive Samantha Barrass said: “This agreement supports FMA’s alignment with international best practice and will help the FMA strengthen its engagement with the wholesale industry and market to deliver regulation that sets robust standards and supports innovation. New Zealand is a small open economy, and so market and regulator-led thinking on global standards is an important part of the FMA’s outcomes-focused approach to regulation.”

Jonathan Moulds, FMSB Chair, said: “I am delighted that we have signed a Consultation Agreement that underlines the growing cooperation between FMA and FMSB to strengthen the fairness, effectiveness and transparency of wholesale markets.”

Myles McGuinness, FMSB CEO, said: “Our strategic goals, to promote fair and effective markets for all participants, align closely to those of the regulatory authorities, policy makers and supervisors both in New Zealand and around the world.

“I am very pleased that this Consultation Agreement demonstrates our important relationship with FMA and look forward to establishing similar arrangements with key regulatory authorities in other jurisdictions as our membership expands.”

 

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