NZX
18/06/2015 10:54
GENERAL
NOT PRICE SENSITIVE
REL: 1054 HRS NZX Limited
GENERAL: NZX: NZX statement re FMA settlement with Milford
NZX notes the announcement today by the Financial Markets Authority regarding
the settlement between the FMA and Milford Asset Management Limited
(Milford). The FMA's investigation followed a referral by NZX to the FMA.
NZX welcomes resolution of this aspect of the investigation. NZX CEO Tim
Bennett commented: "Fair and transparent pricing is fundamental to the
operation of public securities markets and trading on those markets. This
matter has highlighted the importance of effective monitoring of trading
conduct by - and standards that are expected of - brokers and fund managers
participating in the markets."
NZX notes this settlement relates only to Milford as fund manager. The FMA is
regulator of fund managers in New Zealand while NZX's role is to undertake
frontline monitoring of trading on its markets.
In the past three years NZX has made significant investments in its
surveillance, regulatory and enforcement resources and processes that
underpin NZX's obligation to operate fair, orderly and transparent markets.
NZX's surveillance activities and referrals to the FMA demonstrate the
effectiveness of NZX's frontline monitoring systems and processes.
NZX refers a range of matters to the FMA following routine market monitoring
which may result in follow on investigations and, where appropriate,
regulatory action by the FMA. In 2014, NZX referred various matters to the
FMA relating to secondary market conduct. None of those matters referred by
NZX that are yet to be resolved by the FMA involve circumstances similar to
this Milford investigation.
NZX and the FMA are establishing a working group that will engage with the
securities industry on setting expectations and providing further guidance on
broking practices and conduct.
NZX does not intend to make any further public comment today on this matter
beyond this statement.
For further information please contact:
Kate McLaughlin
Corporate Communications
T: 09 309 3654
M: 027 533 4529
E: [email protected]
About NZX Limited
NZX builds and operates capital, risk and commodity markets and the
infrastructure required to support them. We provide high quality information,
data and tools to support business decision making. We aim to make a
meaningful difference to wealth creation for our shareholders and the
individuals, businesses and economies in which we operate. To learn more
about NZX, please visit: www.nzxgroup.com
End CA:00265875 For:NZX Type:GENERAL Time:2015-06-18 10:54:11
