Futures agreement
The agreement between the New Zealand Exchange and the Sydney Futures
Exchange for listing and trading New Zealand futures and options is a positive
step for New Zealand's capital markets.
The NZX has also developed a proposal to take a role in regulating futures
dealers in New Zealand.
The Commission sought the industry's views on regulating futures dealers in a
discussion document in December 2002. At that time the SFE had decided to
move trading in New Zealand Futures and Options Exchange products to Sydney.
Most responders preferred a self-regulatory model, with regulation by an entity
involved in the market place.
The Commission will continue to work with the NZX on the structure for
NZX's proposed regulatory role, including supervision and oversight, and rules
of conduct and trading for futures dealers.
There are advantages for the industry and the market in having an effective self
regulatory framework for futures dealers. We await further details of the
proposal from NZX.
We expect this work to involve further consultation with the industry.
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They're still at it ...
The Securities Commission has recently added several new names to its list of
overseas broking firms which cold call New Zealanders but do not comply with
New Zealand law.
They include Clarkson Gordon Limited of Cyprus, Elders Cohen of California,
Skudder Stevens & Clark from London and Tzu, Waite & Associates from
Singapore.
People who send money to cold callers overseas almost invariably lose their money.
A recent trend is that people who have already lost money are being called again,
purportedly by a new broker, who offers new shares as consideration for the old
shares. Invariably they must pay more money to complete the deal. This is a
perpetuation of the original fraud and the money will inevitably be lost.
84 cold calling brokers are listed at www.seccom.govt.nz. The list is not
exhaustive. These firms change their names and addresses often. We urge people
to hang up on these callers.
It's a small world
Pan Euro Financial SA is named on our website. We were contacted recently by a
United States company which supplies financial tools for websites of brokers and
banks. Pan Euro Financial SA had approached this company to provide financial
tools for their websites.
The company searched the internet for Pan Euro and found them on our list of
people who approach New Zealanders but do not comply with our law.
The company rang us for more information. They were concerned for their company's
reputation and did not want to deal with a company that is not legitimate.
We referred them to the US Securities and Exchange Commission as we
understand that Pan Euro may now be working out of New York.
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International experts arrive soon
The international team conducting the Financial Sector Assessment Programme (FSAP) in New Zealand will arrive in Wellington this month. Their assessment of New Zealand will be carried out from 30 October until 18 November.
The FSAP Mission Chief is Anne-Marie Gulde of the International Monetary Fund's Monetary and Financial Systems
Department.
Among the FSAP team's ten financial experts is Janet Holmes, Senior Legal Counsel from the Ontario Securities Commission. Ms Holmes will help assess New Zealand's implementation of the IOSCO Objectives and Principles of Securities Regulation.
New Zealand regulatory agencies have completed detailed self-assessment questionnaires in preparation for the FSAP visit. The completed questionnaires will be the basis for discussion while the experts are here.
It is likely that the team will ask to meet market participants, industry representatives and relevant professional bodies.
For an overview of New Zealand's financial regulatory framework see the Reserve Bank of New Zealand's September 2003 Bulletin on www.rbnz.govt.nz.
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