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Securities Commission Policy on Stakeholders

The Commission
Crown entity
Securities Commission's stakeholders
Policy for all stakeholders
Policy for specific stakeholders
Compliance and review

The Commission

The Securities Commission is a Crown entity established by the Securities Act 1978. It is the principal regulator of New Zealand's securities markets.

The Securities Commission's purpose is to strengthen confidence in New Zealand's capital markets, both in New Zealand and overseas, by promoting:

the efficiency of these markets;
the integrity of these markets;
the cost-effective regulation of these markets;

and thereby to foster capital investment in New Zealand.

The Securities Commission's statutory functions are set out in section 10 of the Securities Act 1978. These functions are:

to perform the functions and duties conferred or imposed on it by or under the Securities Act or any other enactment; and
to keep under review the law relating to bodies corporate, securities, and unincorporated issuers of securities, and to recommend to the Minister any changes thereto that it considers necessary; and
to keep under review practices relating to securities, and to comment thereon to any appropriate body; and
to co-operate with any overseas regulator and for that purpose, but without limiting this function, to communicate, or make arrangements for communicating, information obtained by the Commission in the performance of its functions and powers, confidential or not, to that overseas regulator which the Commission considers may assist that overseas regulator in the performance of its functions;
to keep under review activities on securities markets, and to comment on those activities to the appropriate body;
on the Minister's request, to advise the Minister on the conduct rules, or amendments to those rules, proposed by securities exchanges;
to promote public understanding of the law and practice relating to securities; and
by agreement with the Takeovers Panel, to provide administrative and support services to the Panel.

In performing its statutory functions the Securities Commission deals with a range of stakeholders i.e. people who are affected by or interested in the Commission's activities. The Commission has adopted this policy for dealing with its stakeholders.

Crown entity

The Commission is a Crown Entity. It does not have shareholders in the usual sense. The Commission is publicly funded, and the Crown has an "ownership interest" in the Commission. The Commission's assets form part of the Crown's assets. As a publicly funded body the Commission is accountable to Parliament through the Minister of Commerce. However, it is also required to work independently, as an independent Crown entity governed by the Crown Entities Act 2004. The Commission's relationship with Government is set out in a Memorandum of Understanding with the Minister of Commerce, and its reporting obligations are fulfilled by the Annual Report and Quarterly Reports to the Minister of Commerce.

Securities Commission's stakeholders

The Commission's stakeholders include:

investors - people who invest in securities;
securities markets participants - issuers of securities, brokers, futures dealers, market analysts, stock and futures exchanges, investment advisers, financial intermediaries;
advisers to market participants - lawyers, accountants and auditors;
other New Zealand regulators and enforcement agencies - Companies Office, Takeovers Panel, Reserve Bank of New Zealand, Serious Fraud Office, Commerce Commission, New Zealand Police;
international regulators - IOSCO, other securities commissions, other international organisations;
employees - staff and Members of the Commission;
Parliamentary Counsel Office;
general public;
news media;
suppliers of goods and services.

Policy for all stakeholders

The Commission will serve the interests of all its stakeholders by being effective in its role and achieving the objectives for which it is funded. Its work on enforcement, exemptions, authorisations, and law reform aims to foster well regulated financial markets in which investors can have confidence.
The Commission will endeavour to increase stakeholders' understanding of the law and practice of securities by providing relevant information via appropriate channels including the news media, Commission reports and other publications, the Commission's website, and targeted education programmes.
The Commission will act at all times in compliance with its Code of Ethics. The code is published on the website and includes statements relating to:
- the values adopted by Members and staff;
- conflicts of interest;
- confidential information;
- Commission property;
- compliance with other ethical codes;
- compliance with the law;
- conduct;
- compliance with the code of ethics;
- reporting breaches of the code of ethics.
The Commission reviewed its Policy on Conflicts of Interest in 2005 to ensure compliance with the Crown Entities Act 2004.
The Commission will deal with stakeholders fairly and in accordance with the law including the rules of natural justice.
The Commission will communicate effectively with stakeholders by providing up-to-date, accurate, relevant, and timely information through relevant communication channels.
The Commission will be responsive to the needs of stakeholders and will act quickly and appropriately to requests for information or assistance.
The Commission will bring a high standard of professional skill, knowledge, and timeliness to its dealings with securities markets participants and their advisers.

Policy for specific stakeholders

In addition to the general policy which applies to all stakeholders the Commission has defined additional policy objectives for its dealings with specific stakeholders.

Investors

The Commission regards investors as the ultimate beneficiaries of its work to enhance the integrity of the securities markets. In particular the Commission will consider investors as stakeholders by
- maintaining an investor protection focus in exercising its functions and powers;
- communicating decisions, warnings and other information of benefit to investors in plain language and through relevant media;
- undertaking education projects to help New Zealanders make better investment decisions.

New Zealand Exchange Limited

The Commission, a co-regulator of NZX with New Zealand Exchange Limited, will maintain its relationship with New Zealand Exchange Limited in accordance with the Memorandum of Understanding.

Other New Zealand regulators and enforcement agencies - Companies Office, Takeovers Panel, Reserve Bank of New Zealand, Serious Fraud Office, Commerce Commission, New Zealand Police

The Commission will be aware of the responsibilities of other regulators of New Zealand's financial markets and will work with them to achieve well regulated securities markets.
The Commission will communicate with other New Zealand regulators to maximise efficiencies and minimise duplication of effort.

International regulators - IOSCO, other securities commissions, other international organisations

The Commission will fulfil its obligations as a member of the International Organisation of Securities Commissions and its committees.
The Commission will fulfil its obligations as a signatory to the IOSCO Multilateral MOU, which governs co-operation and the exchange of enforcement related information between members.
The Commission will fulfil its obligations to cooperate with regulators in other jurisdictions who are not signatories to the IOSCO Multilateral MOU.

Employees

The Commission will operate under a personnel policy that complies with the law and with the principle of being a "good employer". This will include policies relating to recruitment, training, remuneration, career development, and retention of staff.

Parliamentary Counsel Office

The Commission will work in a timely and constructive way with the Parliamentary Counsel Office recognising the pressures and constraints that can apply to this relationship.

News Media

The Commission will have a positive attitude to the news media as a useful means of delivering information about the securities markets and the Commission's role to many of its stakeholders.
The Commission will provide the news media with relevant information and will respond positively to requests for information from the news media whenever possible.

Compliance and review

The General Manager will report to the Commission on use of, and compliance with, the policy on stakeholders as part of the Commission's regular reviews.