NZX & FMA launch industry-led review on New Zealand’s capital markets

The NZX and Financial Market Authority (FMA) have initiated a new industry-led review into New Zealand’s capital markets. “Capital Markets 2029” is designed to deliver a ten-year vision and growth agenda for the sector.

A link to the FMA announcement can be found here.

Who needs to read it?  Why?

The review aims to deliver recommendations on how to attract new activity into NZ capital markets. The review will be of interest to anyone involved in the industry.

What does it cover?

Capital Markets 2029, chaired by Martin Stearne, is set out to consider the current framework and broader ecosystem of New Zealand’s capital markets and outline recommendations for the creation of wider, more active participation and increased diversity of product.

S&P/NZX 50 companies generate more than $24.6 billion in Gross Domestic Product for the local economy and employ close to 10,000 New Zealanders. Capital Markets 2029 aims to create a growth agenda which brings the capital markets ecosystem together to keep building on the active and vital contribution already being made by these companies.

Our view

The review is a welcome development to spark some new life in growing NZ markets. New Zealand’s last review in 2009, completed by the Capital Market Development Taskforce, focused on improving confidence in the sector after the financial collapse with better information and products for investors.

Today, New Zealand markets have often looked complacent and there is an opportunity to improve the range and depth of market offerings and particularly to build equity listings.

The final report will be of great interest to see how the industry might soon move forward to meet these objectives.

What next?

The NZX and FMA have begun the review and the findings of Capital Markets 2029 are expected to be published in Q3 2019.

Who can help

Related Articles