Financial Market Infrastructures Act 2021

  • Schedule 1 clause 1: editorial change made, on 11 August 2022, under sections 86(1) and 87(l)(iv) and (o) of the Legislation Act 2019 (2019 No 58).

Part 1 Preliminary provisions and regulator

Subpart 1—Preliminary provisions

3 Purposes

(1)

The purposes of this Act are to—

(a)

promote the maintenance of a sound and efficient financial system (including by responding to threats to the stability of, or confidence in, the whole or a significant part of the financial system); and

(b)

avoid significant damage to the financial system that could result from problems with an FMI, an operator of an FMI, or a participant of an FMI that threaten the stability of, or confidence in, the whole or a significant part of the financial system; and

(c)

promote the confident and informed participation of businesses, investors, and consumers in the financial markets; and

(d)

promote and facilitate the development of fair, efficient, and transparent financial markets.

(2)

Those purposes are to be achieved by—

(a)

establishing a system for designating systemically important FMIs and FMIs that apply for designation; and

(b)

imposing regulatory requirements on designated FMIs; and

(c)

providing for the supervision of compliance with those requirements by the Reserve Bank of New Zealand and the Financial Markets Authority (acting as the regulator); and

(d)

conferring certain powers on the regulator to gather information; and

(e)

conferring certain powers on the regulator to act in respect of distressed FMIs.

(3)

See also section 77 (which sets out the purposes for which the regulator’s powers under Part 4 may be exercised).