Memorandum of Understanding

MOU NOT BINDING

Nothing in this MOU is intended to limit or affect the independence of either body. Except where the Commission and NZSE expressly agree that the terms and conditions of this MOU are in substitution for and replace the requirements of the Markets Act nothing in this MOU:

(a)	Limits or affects the statutory powers of the Commission or the Commission's ability to perform its functions and act where necessary in the public interest; or
(b)	Requires or obliges NZSE to provide any information to the Commission or obliges NZSE to do any other act or thing which goes beyond NZSE's legal obligations under the Markets Act.

In particular, this MOU is intended to be facilitative and to assist with the mechanics and implementation of those legal obligations imposed upon NZSE under the Markets Act.

3.

OPERATIONS GROUP

The parties will establish an operations group (the "Operations Group") who will manage the implementation and day to day dealings between the parties under this MOU. The Operations Group will comprise the personnel set out in Annex A.

The parties will establish an operations group (the "Operations Group") who will manage the implementation and day to day dealings between the parties under this MOU. The Operations Group will comprise the personnel set out in Annex A.

The Operations Group will meet, in person, at a minimum once every 3 months. In addition to the 3 monthly meeting, the Operations Group will convene at the written request of either party. Where a party requests that the Operations Group convene in addition to its 3 monthly meeting the party calling for the meeting shall provide the other with reasons requesting that a meeting be convened and a draft agenda for the meeting.

At each meeting of the Operations Group the following will be standing agenda items:

(a)	Assessment of the processes established under this MOU, in particular their effectiveness and workability;
(b)	Provision of briefs to each other on any work the other is undertaking in respect of which the other may have an interest, including current investigations and referrals;
(c)	Assessment of the level and appropriateness of referrals each party is providing to the other;
(d)	Assessment as to whether hand offs from one party to the other are occurring at the appropriate time and in an appropriate manner; and
(e)	Recommending changes to the MOU that will assist the day to day operations under it.

The Operations Group will provide a report to the Strategic Group bi-annually concerning the matters addressed by it in the preceding six month period.