The Financial Markets Authority monitors, investigates and enforces other financial markets legislation to ensure financial market participants comply with their governance, reporting and supervision obligations under that legislation. The legislation FMA works with in this regard is the:
- Companies Act 1993
- Financial Reporting Act 1993
- Corporations (Investigation and Management) Act 1989
- Anti-Money Laundering and Countering Financing of Terrorism Act 2009
- Building Societies Act 1965
- Co-operative Companies Act 1996
- Crimes Act (Sections 220, 228, 229, 240, 242, and 256 to 260)
- Friendly Societies and Credit Unions Act 1982
- Industrial and Provident Societies Act 1908
- Limited Partnerships Act 2008
- Reserve Bank of New Zealand Act 1989 (Part 5C)
- Trustee Companies Act 1967
- Securities Trustees and Statutory Supervisors Act 2011
Companies Act 1993
The Companies Act governs the incorporation, management, and operation of companies in New Zealand. The Registrar of Companies is the primary person who oversees the administration of companies in New Zealand. FMA also has an important investigative and enforcement role under the Act, and has the power (along with the Registrar of Companies) to place companies in liquidation, and to ban certain people from being directors of, or managing, companies.
Financial Reporting Act 1993
The Financial Reporting Act sets out the financial reporting requirements for entities that have distributed securities to the public, and certain other companies - such as companies that exceed certain asset or turnover thresholds. For some entities, their financial statements must also be audited and publicly filed.
FMA can grant exemptions from specific reporting requirements of the Act to certain overseas companies (or types of companies) that have distributed securities to the public.
FMA will likely grant these exemptions where it is satisfied the overseas financial reporting requirements are such that it is not necessary for New Zealand investors to also receive information prepared in line with New Zealand financial reporting laws.
Corporations (Investigation and Management) Act 1989
The Corporations (Investigation and Management) Act allows the government, through the Registrar of Companies and FMA, to intervene in cases of corporate collapse, where conventional procedures for dealing with the affairs of the corporation are inadequate.
Under the Act empowering FMA (or the Registrar of Companies, with the consent of FMA) can take action in relation to 'at risk' corporations. FMA can also recommend that a corporation be placed in statutory management.
Anti-Money Laundering and Countering Financing of Terrorism Act 2009
The Anti-Money Laundering and Countering Financing of Terrorism Act seeks to impose a risk-based approach to tracking possible money laundering and terrorism financing activity, and to bring New Zealand into line with internationally recognised standards for anti-money laundering legislation. Read more about the Act.
Building Societies Act 1965
The Building Societies Act provides for the establishment and administration of building societies. FMA and the Registrar of Building Societies each have supervisory and enforcement powers under the Act, to ensure the effective management and operation of building societies.
Co-operative Companies Act 1996
The Co-operative Companies Act provides for the registration of co-operative companies and regulates the relationship between co-operative companies and their shareholders.
Crimes Act 1961 (Sections 220, 228, 229, 240, 242, and 256 to 260)
These sections come within Part 10 of the Crimes Act, which deals with crimes against rights of property. FMA has a role in monitoring compliance with, and investigating conduct and gathering information in relation to, these sections of the Crimes Act 1961.
Friendly Societies and Credit Unions Act 1982
The Friendly Societies and Credit Unions Act governs the registration and operation of friendly and other societies and credit unions.
Industrial and Provident Societies Act 1908
The Industrial and Provident Societies Act governs the establishment and operation of industrial and provident societies. The Act is overseen by both FMA and the Registrar of Industrial and Provident Societies.
Limited Partnerships Act 2008
The Limited Partnerships Act provides for a limited partnership regime in New Zealand, and includes provisions dealing with overseas limited partnerships.
Reserve Bank of New Zealand Act 1989 (Part 5C)
Under Part 5C of the Reserve Bank of New Zealand Act, FMA and the Reserve Bank are joint regulators of designated settlement systems. Designated settlement systems are approved systems or arrangements for payment and settlement of transactions.
Trustee Companies Act 1967
The Trustee Companies Act 1967 provides for the appointment of a trustee company to a range of offices and positions, and regulates the operation of trustee companies.
Securities Trustees and Statutory Supervisors Act 2011
The Securities Trustees and Statutory Supervisors Act established a compulsory licensing regime for trustees of debt securities and unit trusts, and statutory supervisors of certain collective investment schemes and retirement villages.
FMA will oversee the licensing regime, which comes into force in October 2011, and will also have an ongoing supervisory and enforcement role in relation to the performance of licensed trustees and statutory supervisors.
See compliance information for trustees and statutory supervisors.