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Consulting Financial Markets Infrastructure Act

Friday 30 July 2021

 
The Financial Markets Authority (FMA) and the Reserve Bank New Zealand (RBNZ) are consulting with industry about new legislation to protect the New Zealand’s financial system.

The two financial regulators are looking for feedback by 20 September.

This consultation is based on Financial Market Infrastructure Act which become law in May of this year which governs financial market infrastructures-this allows electronic payments and financial market transactions. 

RBNZ Deputy said that well managed FMIs are essential for well-functioning financial system.

RBNZ Deputy Governor Geoff Bascand said in official statement, “It is also true, however, that problems or disruptions at an FMI could lead to severe adverse impacts to financial markets, the wider financial system and the economy as whole. The enhanced regulatory framework established by the Act provides scrutiny of FMIs and powers for regulators to intervene if needed to avoid significant damage to the financial system from problems with an FMI, its operator, or its participants,” he said.



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