FMA Bill better for select committee make-over

Our thanks to Roger Wallis for writing this Brief Counsel.

The Financial Markets (Regulators and KiwiSaver) Bill has emerged from the select committee a more balanced and effective piece of legislation.

The committee has pulled some of the teeth the original Bill gave the Financial Markets Authority (FMA) but has sharpened the FMA's bite in other areas – particularly in relation to unsolicited low-ball offers.

This Brief Counsel comments on the committee's key financial market recommendations. We will comment later on the KiwiSaver changes.

Objectives and functions of the FMA

The FMA's "main objective", stated in a replacement clause 8 in the Bill, is now "to promote and facilitate the development of fair, efficient and transparent financial markets".