Financial Market Infrastructures Bill

  • enacted
13 Purposes and principles of exercising powers under this Act (other than Part 4)


The powers of the regulator, the FMA Minister, and the RBNZ Minister must be exercised for 1 or more of the purposes set out in section 3.


In deciding whether to exercise its powers, and in exercising them, the regulator must take into account the following principles that are relevant:


the importance of recognising that FMIs can have a key role in maintaining a sound and efficient financial system:


the importance of recognising that primary responsibility for ensuring that an FMI is sound and efficient rests with its operators, participants, and indirect participants and those who own or control its operators, participants, and indirect participants:


the need for an FMI’s rules to provide, to the extent possible, certainty and predictability about the rights and obligations of the FMI’s participants and indirect participants, especially in the event of a participant default or an indirect participant default:


the importance of regulating FMIs in a way that is consistent with international standards for their regulation where those standards are appropriate for conditions in New Zealand:


the importance of recognising the diversity of FMIs and of taking into account the circumstances of particular FMIs (while recognising the importance of consistency in the treatment of similar FMIs):


the need to avoid unnecessary compliance costs and unnecessary constraints on innovation:


the importance of timely, accurate, and understandable information being available to participants, indirect participants, and potential participants or indirect participants, of an FMI to assist them in making informed decisions about their interaction, or potential interaction, with the FMI.


This section does not apply to powers under Part 4 (see instead sections 78 and 78A).