Publications: Statement of Intent 2009-2012

Exemptions and authorisations - considering and deciding on applications for exemptions from the provisions of the Securities Act 1978, Securities Markets Act 1988 and the Securities Regulations 1983; considering and deciding on applications for authorisation of market participants, including futures exchanges and dealers, trustees and statutory supervisors; reviewing existing authorisations.

Receive and consider applications for exemption from securities law
Review existing exemptions
Undertake special review projects relating to policy on exemptions
Authorise futures dealers and exchanges
Consider amendments to futures exchange rules
Approve NZFOX participant rules
Approve trustees and statutory supervisors
Review existing authorisations

Performance measures
Exemptions and authorisations

Performance standards

2009/2010 Forecast

2008/09 achievements as estimated at 31 March 2009

Quantity

Consider all applications for exemptions and authorisations of market participants

All applications

Review existing exemption notices and authorisations

As required

Quality

The Regulations Review Committee does not recommend disallowance of notices, and notices are not successfully judicially reviewed

100%

A Statement of Reasons published in each notice explains the policy basis for the exemption

100%

Proportion of notices issued which comply with the Commission’s internal processes

100%

Timeliness

Percentage of exemption applications and authorisations completed within 6 weeks of receiving all necessary information or within other period agreed with applicant

100%

Cost

Expenditure allocated to exemptions and authorisations

International cooperation and recognition - promoting New Zealand's markets as well regulated, keeping abreast of developments in global standard setting and contributing the Commission's views to this process.

Promote New Zealand's markets and regulatory environment
Take part in the work of IOSCO's
- Executive Committee (Jane Diplock is Chairman of this committee)
- Asia Pacific Regional Committee (Jane Diplock is Vice Chairman)
- Taskforce on the Implementation of Objectives and Principles of Securities Regulation
- MMOU Screening Group
- Communications Group
Meet and confer with overseas regulators and institutional investors
Respond to overseas enquiries about New Zealand's regulatory regime
Participate in the international standard setting process by completing comparative surveys on securities law and regulation
Fulfill the obligations under the IOSCO MMOU and bilateral MOUs.
Contribute towards trans-Tasman initiatives
Liaise with MFAT and NZTE to take opportunities to promote New Zealand's markets and regulatory environment to wider audiences

Performance measures
International cooperation and recognition

Performance standards

2009/2010 Forecast

2008/09 achievements as estimated at 31 March 2009

Quantity

Take part in the work of IOSCO’s Executive Committee, Asia Pacific Regional Committee, Implementation of Objectives and Principles of Securities Regulation Committee, and the Screening Group

100% of relevant meetings

Take opportunities at IOSCO meetings to promote understanding of New Zealand as a well regulated market in which investors can have confidence

100% of opportunities are taken

100% of opportunities taken

When travelling for IOSCO take opportunities identified with MFAT and NZTE to promote New Zealand to wider business audiences as a well regulated market in which investors can have confidence

Leveraging undertaken in 100% of relevant international destinations visited

67% of destinations visited
(target 70% of all destinations for 08/09 year)

Respond to requests from overseas regulators

As required

We responded as required

Meet with ASIC

Twice per year

Meetings held in March and April 2009

Meet with overseas regulators and institutional investors

As required

Met with counterpart agencies, NYSE, IASB, IMF and World Bank. Addressed World Federation of Exchanges annual meeting; took part in Financial Stability Forum Asian meeting

Contribute towards trans-Tasman initiatives

As required

Contributed towards implementing mutual recognition of securities offering. News release issued

Quality

The Commission will present itself as a constructive and cooperative member of the international community of regulators. Views expressed to IOSCO will take into account the relevant New Zealand values and principles

Presentations include information about NZ’s regulatory environment

Met with and briefed NZTE and MFAT representatives overseas. Participated in Financial Crisis Advisory Group. Met with opinion leaders

The Commission makes a positive contribution to the work of IOSCO’s screening group towards IOSCO’s strategic goal for the IOSCO MMOU

IOSCO satisfied with contribution

Contributed to meetings resulting in 3 additional signatories to the IOSCO MMOU and 5 further jurisdictions joining Appendix B of theMMOU

With NZAID funding, launched and progressed a technical assistance project helping Papua New Guinea apply to the IOSCO MMOU

Cooperative work with ASIC is completed to agreed standards and timeframes

100%

Timeliness

Presentations at meetings and responses to committees provided within agreed timeframes

100%

Contribute towards trans-Tasman initiatives within agreed time

100%

Obligations under MOUs with overseas regulators are fulfilled in agreed times

100%

Cost

Expenditure allocated to international recognition

13%

17%

Develop and implement initiatives to promote awareness and understanding of securities law and securities market practices and the Commission's work
Publish The Bulletin, annual report and other documents
Respond to public inquiries
Manage the website
Maintain relationships with the news media

Performance measures
Output - Public understanding

Performance standards

2009/2010 Forecast

2008/09 achievements as estimated at 31 March 2009

Quantity

Publish The Bulletin.

4 issues

Deal with inquiries from the public

All inquiries

Manage the Commission’s website

Website is available 95% of the time

Website was available 99% of the time

Develop and implement public education projects

N/A (not a future measure)

1 sub-project implemented

Communicate significant regulatory actions

100%

N/A (new measure)

Quality

Readers respond that The Bulletin is interesting and relevant

95% of survey repondents

N/A

Education projects meet their set measures of success.

N/A (not a future measure)

Objectives for sub-project were met

Major communications initiatives

90% of pre-set measures of success for each initiative

N/A (new measure)

Inquiries are dealt with effectively

Absence of material complaints

Did not received a material number of complaints

Timeliness

The Bulletin is produced on time.

July/Oct/Jan/April

Education projects are carried out to agreed timetables

N/A (not a future measure)

Sub-project milestones achieved

Public inquiries are handled within 5 working days of receipt

95%

New information is published on the website without delay

New information is available on the website within 3 days of receipt

On website within 3 days of receipt by Communications staff

Cost

Expenditure allocated to public understanding

10%

Performance measures
Takeovers Panel

Performance standards

2009/2010 Forecast

2008/09 achievements as estimated at 31 March 2009

Quantity, Quality and Timeliness

Services are provided as per the MOU between the Panel and the Commission

In accordance with the MOU or any amendments agreed to this.

In accordance with the MOU

Cost

Expenditure allocated to Takeovers Panel

Expected revenue and proposed expenses (for class of output)

Class of output – Performance of Securities Market Functions (Vote Commerce)

2009/10
Forecast
$000

2008/9
Estimates
$000

Expected revenue

9,570

8,218

Proposed expenses

10,645

8,550

Operating deficit

(1075)

(332)

Class of output – Litigation fund

2009/10
Forecast
$000

2008/9
Estimates
$000

Expected revenue

844

855

Proposed expenses

844

611

Litigation surplus

Class of output – Capital expenditure

2009/10
Forecast
$000

2008/9
Estimates
$000

Investment in Securities Commission

600

This information is provided pursuant to section 142(2)(b), Crown Entities Act 2004.

GLOSSARY

Where the subject of our inquiries has failed to comply with the law, the desired regulatory result is the outcome that, in the circumstances of the case, best rectifies the breach, minimises any loss to investors and sends the appropriate regulatory message.

For the purposes of this SOI functions are the areas of work for which the Commission is funded from Vote Commerce. The Commission's statutory functions are set out in the Securities Act 1978.

The five specific outcomes for the New Zealand securities markets that the Commission contributes to by delivering the outputs for which it is funded and achieving its objectives.

Statement of Intent 2009-2012

International cooperation and recognition - promoting New Zealand's markets as well regulated, keeping abreast of developments in global standard setting and contributing the Commission's views to this process.

Public understanding - promoting public understanding of the law and practice relating to securities.

Expected revenue and proposed expenses (for class of output)

Class of output – Performance of Securities Market Functions (Vote Commerce)

GLOSSARY