Statement of Intent 2006 - 2009

Key result area 5 - International cooperation and recognition

New Zealand is part of the global securities markets. The Commission's international work promotes our markets overseas, contributes a New Zealand view in international forums, contributes to the work of IOSCO, and enables us to fulfil our obligations under the IOSCO MMoU and bi-lateral MOUs. The outcome that we aim to contribute to is that New Zealand's markets and regulatory environment are respected internationally, creating a climate for increased investment and good relationships with overseas regulators.

The Commission has determined objectives to be achieved to contribute to this outcome during the next three financial years. They include:

Objective - the Commission's performance within the existing legislative framework is positively regarded internationally.

Objective - the Commission makes an effective contribution to the work and development of IOSCO and other relevant international bodies.

Objective - the Commission assesses recommendations of international bodies and their relevance to New Zealand.

Objective - the Commission is well-informed of relevant international developments and trends.

Objective - the Commission has a strong relationship with ASIC.

The Commission will have successfully achieved these objectives, or contributed to their successful achievement, when it:

• makes use of the IOSCO MMoU and bilateral MOUs to help detect international fraud and effectively enforce securities law;
• takes part as a speaker and adviser at international forums;
• fulfills relevant duties e.g. committee membership and chairmanship, which advance the work of IOSCO and other relevant bodies;
• meets regularly with ASIC Members and staff and has developed programmes for co-operation.

Key result area 6 - Public understanding and market presence

The Commission undertakes a range of communications activities. The outcome it aims to contribute to is to increase public understanding of the law and practice of securities and the Commission's presence in the markets. The Commission works with other agencies including Enterprise New Zealand Trust, Retirement Commission, and Ministry of Consumer Affairs to further financial education.

The Commission has determined objectives to be achieved to contribute to this outcome during the next three financial years. They include:

Objective - investors and potential investors have access to information to help them understand the law and practice of securities.

Objective - people are aware of the work and views of the Commission.

The Commission will have successfully achieved these objectives when:

• participation in financial education programmes in schools increases;
• surveys and/or feedback indicate participants in education programmes have greater understanding of securities matters;
• the Commission's messages about the securities markets are published in relevant media and website visitor numbers increase.

Capability and risk

The Commission has developed a risk management framework. This identifies 25 issues/risks under the broad headings:

• governance;
• culture;
• strategy;
• staff;
• reputation;
• operations;
• compliance.

The risk management framework is reviewed and updated regularly. The Commission identified eight main risks:

• recruitment;
• key personnel;
• physical event/disaster;
• strategic plan;
• staff retention;
• reputation - New Zealand capital markets;
• confidentiality of information;
• knowledge available.

The Commission has developed responses to each of them.

Organisational health

The Commission is committed to being a good employer. This is reflected in the results of the Unlimited/JRA Best Places to Work in New Zealand Survey, where we ranked number two of 69 in the small employer category in 2005. Our objective over the next three years is to keep our status as a good employer by continuing our values-based culture, being responsive to staff feedback, and continuing the human resource practices that have proven so effective. The Commission will continue to use the Unlimited/JRA Best Places to Work in New Zealand Survey to measure its performance as a good employer.

The Commission has difficulties recruiting qualified legal and accounting staff in the current job market. Unemployment is low and many young lawyers and accountants seek overseas experience. The Commission counters this by boosting graduate recruitment, intensifying overseas recruitment, and targeting New Zealand recruitment campaigns effectively.

Collaboration on organisational health and capability building

The Commission is collaborating with these agencies for its organisational capability and health initiatives:

• the State Services Commissioner, for its six Development Goals for the State Services;
• the Equal Employment Opportunities Unit of the Human Rights Commission for its Good Employer Guidance under the National Equal Opportunities Network.