Ann: GENERAL: NZX: Amendments to NZ Markets Disciplinary Tribunal Rules

• Release Date: 16/06/14 09:59
• Summary: GENERAL: NZX: Amendments to NZ Markets Disciplinary Tribunal Rules
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					NZX
16/06/2014 09:59
GENERAL

REL: 0959 HRS NZX Limited

GENERAL: NZX: Amendments to NZ Markets Disciplinary Tribunal Rules

Notice to: Listed Issuers - Main Board / Debt Market / Alternative Board
Market Participants
Advisors
Derivatives Participants
Derivatives Advisors
Clearing Participants
Depository Participants

16 June 2014

NZX Regulation Announcement

Amendments to NZ Markets Disciplinary Tribunal Rules

In January 2014 NZX published a consultation memorandum proposing amendments
to the NZ Markets Disciplinary Tribunal Rules. That consultation memorandum
is available at www.nzx.com/market-supervision/rules-consultation. Following
NZX's consideration of submissions it received in relation to the proposed
amendments, and further consultation with the NZ Markets Disciplinary
Tribunal ("Tribunal"), NZX submitted proposed Rule amendments to the
Financial Markets Authority ("FMA") for approval.

Pursuant to Rule 1.3.1, NZX hereby gives notice to Participants that
effective 14 July 2014, the Rules have been amended as follows:

1. Changes to the structure and membership of the Appeal Panel - Rules 5.1
and 5.2

The structure of the Appeal Panel will be amended so that the Appeal Panel
will be comprised of Tribunal members who have experience considering
suspected breaches of the Market Rules. In this regard:

- The Appeal Panel will comprise 3 current Tribunal members who do not have a
conflict of interest, and who are independent of both the parties to the
matter and the Tribunal members who sat on the Division for the Full Hearing;
and
- Appeal Panel members will be appointed by the Tribunal Chair, or where the
Chair was absent or conflicted, the Tribunal's Deputy Chair; and
- One Appeal Panel member will be an experienced lawyer.

2. Term of Appointment of Members - Rule 2.1.5 and 2.1.6

Rules 2.1.5 and 2.1.6 have been amended to remove the requirement for
one-third of Tribunal members to retire by rotation each year. Instead each
member of the Tribunal may be appointed for a term of up to three years,
however NZX may appoint a retiring member for a further term. FMA
confirmation of an appointment is necessary where a Member's term is for an
aggregate of more than 9 years.

3. Award of Costs - Rule 12.1.1 and 12.3.1

Rules 12.1.1 and 12.3.1 have been amended to clarify that the Tribunal may
only award costs against NZX, CDO and CHO where NZX, CDO or CHO has acted
vexatiously, frivolously or unreasonably.

4. Discretion to extend timeframe of determination - Rules 6.3.1, 6.3.5,
6.3.6 and 6.3.7
Rule 6.3.1 has been replaced and new Rules 6.3.5, 6.3.6 and 6.3.7 have been
inserted to confer discretion on the Chairman of a Division to extend the
period for the determination of a matter referred under the Summary Hearing
Procedure.

5. Penalties - General

NZX has taken the opportunity to address anomalies and inconsistencies in
Section 11: Penalties of the Rules. These amendments will:

- Remove the Tribunal's power to impose a probationary period on a Market
Participant under the Summary Hearing Procedure; and
- Permit the Tribunal to order a Market Participant who is a natural person
to pay commission arising from a transaction giving rise to a breach of the
NZX Participant Rules to the Discipline Fund; and
- Expressly prohibit the Tribunal from cancelling the quotation of Securities
under the Summary Hearing Procedure; and
- Clarify that the factors to be considered by the Tribunal and Appeal Panel
when imposing penalties are not mutually exclusive.

A marked-up copy showing the differences between the amended Rules and the
current Rules dated 5 March 2013 is attached to this announcement. The
amended NZMDT Rules will be available on nzx.com and i-search, from 14 July
2014.

ENDS.
End CA:00251616 For:NZX    Type:GENERAL    Time:2014-06-16 09:59:20