Move supports the regulator's alignment with international best practice
The Financial Markets Authority (FMA) has entered into a consultation agreement with market-led, global standards body Financial Markets Standards Board (FMSB) in a significant move towards fostering fair and effective global wholesale financial markets.
The agreement between FMA and FMSB formalises the collaboration to uphold market integrity, mitigate vulnerabilities, and disseminate clear guidance for conducting business in the financial sector.
The FMA, committed to aligning with international best practices, shares a common interest with FMSB in enhancing the operations of wholesale fixed income, currency, and commodities markets.
While industry standards do not replace legal obligations in New Zealand, the agreement seeks to complement laws by promoting good industry standards and facilitating consultations on draft guidance and publications.
In a media release, FMA CEO Samantha Barrass (pictured above) said that as a small open economy, New Zealand places significant importance on market and regulator-led global standards, integral to the FMA’s outcomes-focused regulatory approach.
“This agreement supports FMA’s alignment with international best practice and will help the FMA strengthen its engagement with the wholesale industry and market to deliver regulation that sets robust standards and supports innovation,” Barrass said.
FMSB Chair Jonathan Moulds and FMSB CEO Myles McGuinness also commented on the cooperation.
“I am delighted that we have signed a consultation agreement that underlines the growing cooperation between FMA and FMSB to strengthen the fairness, effectiveness, and transparency of wholesale markets.” Moulds said.
“I am very pleased that this consultation agreement demonstrates our important relationship with FMA and look forward to establishing similar arrangements with key regulatory authorities in other jurisdictions as our membership expands,” McGuinness said.
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