1. About us
  2. What we do
  3. How we regulate
  4. Enforcement policy

Enforcement policy

Page last updated: 21 Feb 2019

This policy explains how we enforce our function and powers in promoting and facilitating the development of fair, efficient and transparent financial markets. We use a range of tools to respond to market conduct that poses the greatest likelihood of harm to capital markets.

Our main objective is to promote and facilitate the development of fair, efficient and transparent financial markets. As a risk-based regulator, our resources are focused on conduct that we think poses the most significant risk to achieving this objective.

We are committed to being outward-looking in our engagement with market participants and ensure they clearly understand their responsibilities, what our role is, and how we exercise our functions and powers.

Our approach to enforcement covers the following area

Our priorities for enforcement

Our approach to formal functions and powers

Third party accountability

Publication of enforcement action

We will continue to publicise enforcement action against those active in the financial markets unless there is policy, legal or other compelling reasons not to. This approach is intended to maximise the visible deterrence of enforcement activity, and to educate market participants about the behaviour and standards we expect of those operating in our jurisdiction.

Intervention earlier in the life cycle

Our approach to the use of criminal powers

Use of section 34 powers

Settlement policy


Co-ordinating enforcement activity with other agencies

Clarification of the law

30. We have a statutory responsibility to review the law and practices related to providing financial products and services. Among other things, this may require us to test the boundaries of the law for the overall benefit of all market participants. Accordingly, we may take ‘grey area’ cases in order to provide clarity to the market.

Matters we are unlikely to enforce