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Surveillance


Market intelligence

The Financial Markets Authority gathers market intelligence about local and global developments that may affect capital markets generally or particular investors.

We gather and analyse relevant information to ensure we stay abreast of market developments and innovation. This includes regular review of financial markets and participants' activities to identify and assess possible risks to investors, market fairness, efficiency and transparency, or risks to the financial system.

This surveillance activity extends to FMA's responsibility for anti-money laundering involving financial market participants. Our annual sector risk assessments contribute to NZ Police's National Risk Assessments.

See more about anti-money laundering and countering financing of terrorism.
 
FMA pays particular attention to activities that sit at the edges of regulation, and activities structured to fall outside regulatory requirements. Where appropriate, we will make policy recommendations to eliminate activities that could harm investors.

Review of financial reporting by issuers

FMA reviews financial reporting by issuers. We produce guidance to help and encourage issuers to improve the quality of their financial reporting. Good quality reporting by issuers is fundamental to the fairness, efficiency and transparency of New Zealand's financial markets. 

Review of prospectus

FMA may review a registered prospectus to determine whether it:

  • complies with the Securities Act 1978 and the Securities Regulations
  • contains any material incorrect descriptions or errors, or any material matter that is not clearly legible
  • is false or misleading, or omits any material particular.

FMA is not obliged to review every registered prospectus, and may choose not to review in some circumstances. FMA takes a risk-based approach to selecting prospectuses for review.

During our review of a prospectus, FMA may contact the issuer to ask questions about its disclosure and may ask the issuer to correct or improve its prospectus.

Nothing FMA does suggests that a prospectus complies with the law or meets required disclosure standards. FMA can cancel a prospectus or prohibit allotment at any time, even if the document has undergone post-registration review.

See more about registering a prospectus.