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Statement of Intent 2006 - 2009

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OUTPUT 2

Monitoring and market oversight - maintaining oversight of securities market activity and taking actions in accordance with statutory powers.

Outcome

Integrity of, and confidence in, the securities markets are improved.

Activities

Maintain oversight of securities markets and take appropriate action in the following areas:

futures dealers,
insider trading,
market manipulation,
NZX oversight,
secondary market disclosures (substantial security holder disclosure, continuous disclosure and disclosure of trading by directors and officers),
offer documents,
financial intermediaries,
illegal offers,
contributory mortgages,
corporate governance,
financial reporting,
regulatory co-ordination.

This is done by:

overseeing the operation of NZX,
reviewing practices of market participants and issuers,
assessing referrals from NZX,
monitoring market disclosures,
reviewing offer documents and advertisements for securities,
responding to public complaints,
using compulsory information-gathering powers (inspections, summons),
commenting publicly on market practice,
accepting enforceable undertakings,
reviewing financial reporting by issuers,
reviewing corporate governance reporting,
acting on behalf of overseas commissions.

Performance measures Monitoring and market oversight	Performance standards
Performance measures Monitoring and market oversight	2006/2007	2005/06 Comparatives
Quantity
Complete the monitoring and market oversight matters that meet the Commission's case selection criteria, relating to matters listed above. We expect there to be 200 of these.	200	180
Complete NZX oversight review.	1 time in the year	1
Complete financial reporting surveillance programme.	2 cycles in the year	1
Complete the review of disclosure by finance companies.	1	N/A
Advise the Minister on proposed changes to Conduct Rules of the NZX.	3 times in the year	2
Consider and comment on continuous disclosure applications under the MOU with the NZX.	12 times	8
Quality
There is no successful challenge to the Commission's decisions or actions under the rules of natural justice.	100%	N/A
Monitoring and market oversight inquiries comply with the Commission's internal processes.	Full compliance	N/A
Timeliness
Complete monitoring and market oversight matters.	Within 3 months of decision to commence inquiries	Within 3 months of commencement
Complete NZX oversight review.	Within 6 months of commencement of review	Within 6 months of commencement
Complete financial reporting surveillance programme.	On average, within 9 months of commencement of each cycle	On average, within 9 months of commencement
Complete the review of disclosure by finance companies.	Within 12 months of commencement of review	N/A
Advice is provided to the Minister on approvals of, or proposed changes to, the Conduct Rules of NZX Ltd. within timeframes agreed with the NZX and allowing the Minister to exercise powers within the timeframes specified in the Securities Markets Act 1988. Cost Expenditure allocated to monitoring and market oversight	100% 35%	100% 32%

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