Amendments to the NZMDT Rules and Procedures

Thursday 15th September 2022

NZX gives notice of amendments to the NZ Markets Disciplinary Tribunal Rules (Rules) in accordance with Rule 1.3, and amendments to the NZ Markets Disciplinary Tribunal Procedures (Procedures). This notice follows the Financial Markets Authority’s (FMA) approval of the changes to the Rules.

The Rule changes implement the proposals set out in the NZX consultation paper dated 30 November 2021.The key changes to the Rules and Procedures are:

· Changes designed to streamline the membership and composition of the Tribunal, and to create greater flexibility in relation to the persons who may be appointed as Tribunal members;

· Changes designed to clarify the scope of appeal, hearing and evidence provisions of the Rules, and the inclusion of virtual hearings; and

· Changes to the penalty methodology and structure to include a two-step process towards determining a penalty in relation to a breach. The penalty band structure has also been updated to support the two-step penalty assessment process with the inclusion of the following over-lapping and cascading penalty bands:

- Penalty band 1 – minor breaches $0 to $40,000

- Penalty band 2 – moderate breaches $30,000 to $250,000

- Penalty band 3 – serious breaches $200,000 to $500,000

Please note that the markup versions of the amendments and the finalised Rules and Procedures are available at the link below:

https://www.nzx.com/regulation/nzx-rules-guidance/upcoming-rules-guidance-changes

Transition period

In accordance with Rule 1.5.1, any matters referred to the Tribunal prior to Monday, 17 October 2022 will be considered under the Rules dated 10 December 2020, the Procedures dated 29 February 2016. Any matters referred to the Tribunal on or after Monday, 17 October 2022 will be considered under the amended Rules and Procedures dated 17 October 2022.

Amendments to the NZMDT Rules and Procedures

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Amendments to the NZMDT Rules and Procedures

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