Financial Market Integrity in New Zealand Boosted by Global Standards Partnership
The Financial Markets Authority (FMA) of New Zealand has entered into a consultation agreement with the Financial Markets Standards Board (FMSB), marking a significant step towards enhancing the integrity and efficiency of global wholesale financial markets.
Enhancing Market Integrity and Efficiency
The partnership aims to provide clear, actionable guidance to minimize market vulnerabilities and advocate for the broad adoption of these standards. The FMA recognizes the FMSB’s objectives and is committed to providing regulatory oversight that supports the development of robust operational practices within market intermediaries.
Integrated Approach to Guidance Development
The agreement allows for a more integrated approach in the development of FMSB’s guidance and publications, with the FMA playing a consultative role. This collaboration will help streamline the process and ensure that standards are aligned with international best practice.
Quotes from Key Stakeholders
“This agreement supports FMA’s alignment with international best practice and will help us strengthen our engagement with the wholesale industry and market to deliver regulation that sets robust standards and supports innovation.” - Samantha Barrass, FMA chief executive
“New Zealand is a small, open economy, and so market and regulator-lead thinking on global standards is an important part of the FMA’s outcomes-focused approach to regulation.”
Complementary Force to Existing Laws
The partnership is seen as a complementary force to existing principle-based laws in New Zealand, rather than a substitute for legal obligations. It aims to promote strong operational practices within market intermediaries and enhance the functioning of wholesale fixed income, currency, and commodities markets.
Benefits for Investors and Market Participants
This development comes as good news for investors and market participants alike, as it demonstrates New Zealand’s commitment to maintaining financial market integrity and promoting global standards. The partnership is expected to foster a more collaborative approach between regulators, industry players, and market participants, ultimately leading to greater stability and efficiency in the financial markets.
Key Takeaways
- The FMA has entered into a consultation agreement with the FMSB to enhance market integrity and efficiency.
- The partnership aims to provide clear guidance and promote the adoption of global standards.
- The FMA will play a consultative role in the development of FMSB’s guidance and publications.
- The partnership is expected to foster greater collaboration between regulators, industry players, and market participants.