The Financial Markets Authority and administrative monetary penalties

Marina Nehme

    Research output: Contribution to journalArticlepeer-review

    Abstract

    As a result of the Global Financial Crisis, weaknesses in New Zealand's securities law regulatory regime have become more apparent. Reviews and reforms are currently being undertaken and implemented to ensure the robustness of the regulatory system. For example, the Financial Markets Authority Act 2011 has introduced a new regulator, the Financial Markets Authority, to take the place of the New Zealand Securities Commission and regulate securities laws. Further, in October 2011, the Financial Markets Conduct Bill, which may replace the Securities Act 1978 and the Securities Market Act 1988, was introduced to Parliament. One of the changes proposed by the Financial Markets Conduct Bill relates to providing the Financial Markets Authority with a new administrative monetary sanction, the infringement notice. This article considers the current proposal and the advantages and disadvantages of this sanction. The article further considers whether the introduction of additional higher-amount monetary penalties, as discussed in the Ministry of Economic Development's Review of Securities Law discussion paper of June 2010, should also be welcomed. The article supports the proposed introduction of infringement notices but suggests that the introduction of additional, higher-amount monetary penalties referred to as administrative penalties should not take place without an in-depth study of the sanctions already available to the Financial Markets Authority.
    Original languageEnglish
    Pages (from-to)21-41
    Number of pages21
    JournalNew Zealand Business Law Quarterly
    Volume18
    Issue number1
    Publication statusPublished - 2012

    Keywords

    • securities industry
    • law and legislation
    • New Zealand
    • New Zealand. Financial Markets Authority
    • sanctions, administrative

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