FMSB, NZFMA Sign Consultation Agreement

UK-based Financial Markets Standards Board (FMSB), has signed a consultation agreement with The New Zealand Financial Markets Authority (FMA), a move that formalises cooperation between the two bodies.

The two associations say 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.

They add they have strong shared interests in maintaining, and where appropriate, improving the operation of wholesale fixed income, currency and commodities markets and the 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 The agreement will facilitate the FMSB’s consultation with the FMA in the development of draft guidance and other publications.

“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,” says FMA chief executive, Samantha Barrass. “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.”

Myles McGuinness, FMSB CEO, adds, “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.”