New Zealand: FMA consults on updated (and refocused) Corporate Governance Handbook

The Financial Markets Authority has published for consultation an updated edition of its Corporate Governance Handbook: see here (pdf). The consultation follows the publication earlier this year by the NZX of an updated edition of its corporate governance code (here, pdf). The FMA regards the NZX Code as providing the primary guidance on governance practices for NZX listed companies; the focus of the FMA Handbook has therefore moved away from listed companies and is intended instead to provide practical guidance for directors of non-listed companies including state owned enterprises and public sector entities.

New Zealand: FMA Handbook - Corporate Governance in New Zealand, Principles and Guidelines

Following a consultation last year, the Financial Markets Authority has published a new edition of its handbook Corporate Governance in New Zealand - Principles and Guidelines: see here (pdf). The handbook was first published in 2004 by the Securities Commission (now replaced by the FMA) and is a reference guide to help directors and their advisers decide how best to apply the nine key corporate governance principles.

New Zealand: FMA consults on revised handbook on corporate governance principles and guidelines

The Financial Markets Authority has published for consultation a revised edition of its handbook Corporate Governance in New Zealand - Principles and Guidelines: see here (pdf). Information on how to provide feedback is available here. The handbook was first published in 2004 by the Securities Commission and is a reference guide to help directors and their advisers decide how best to apply the nine key corporate governance principles.

Note: on 1 May 2011 the Securities Commission was replaced by the FMA (see the Financial Markets Authority Act 2011).

New Zealand: FMA calls for improvements in disclosure of fees paid to auditors by listed issuers

The Financial Markets Authority has published the results of its review of the disclosure of fees paid to auditors by listed issuers: see here (pdf). The review noted that some companies' disclosures made it difficult to determine the fees relating to the audit of the financial statements and those paid for other services. It was also noted, in a large number of the financial statements reviewed, that the amount paid to the auditor for the audit of financial statements and the descriptions of the nature of other services provided by the external auditor could be more clearly identified.

New Zealand: FMA publishes audit quality report

The Financial Markets Authority has published its audit quality review report for the year ended 30 June 2013, based upon an assessment of the internal quality control systems and individual audit files of nine audit firms: see here (pdf). Areas for improvement have been identified, including auditor independence and ethical issues; auditor quality monitoring; audit documentation and evidence; and the use of professional scepticism.

New Zealand: FMA consults on financial services licensing standards and conditions

The Financial Markets Authority has published for consultation proposed licensing standards and conditions in respect of discretionary investment services, peer to peer lending, crowd funding, independent trustees, derivative issuers and managed investment scheme managers: see here. The standards include governance requirements.

New Zealand: the Auditor Regulation Act 2011 - first consultation paper published by FMA

The Financial Markets Authority has published the first of several consultation papers concerning the implementation of the Auditor Regulation Act 2011. The first paper - available here (pdf) - covers matters including the minimum standards a person would need to meet in order to receive a licence to perform issuer audits and the minimum standards an audit firm must meet in order to be registered.

New Zealand: The Financial Markets (Regulators and KiwiSaver) Bill

The Financial Markets (Regulators and KiwiSaver) Bill was introduced in Parliament earlier this week and provides for the creation of the new financial regulator, the Financial Markets Authority (FMA), and sets out its objective, functions and powers. A copy of the Bill is available here (html) and here (pdf, 4.2 MB).

Interestingly, the Bill contains provisions (in sections 34 to 41) which will given the FMA the power to exercise a person's civil right of action against, amongst others, financial market participants (defined in section 4) where, as a result of an investigation or inquiry carried out by the FMA, this is considered to be in the public interest. In other words, it will provide for the public enforcement of certain duties owed by financial market participants.

Note: it is intended that the Bill will be divided at the Committee of the whole House stage into the following separate Bills:

• Parts 1 to 4 and Schedules 1 to 4 will become the Financial Markets Authority Bill.
• Part 5 will become a Securities Amendment Bill.
• Part 6 and Schedule 5 will become a Securities Markets Amendment Bill.
• Part 7 and Schedule 6 will become a KiwiSaver Amendment Bill.
• Part 8 and Schedule 7 will become a Financial Advisers Amendment Bill.