Role Of Financial Market Authority On Corporate Business World Essay

1524 WordsSep 14, 20167 Pages
ROLE OF FINANCIAL MARKET AUTHORITY(FMA) In this essay my aim is to discuss and compliment the various roles of financial market authority in corporate business world. My research will depict that Financial market authority (FMA) has been emerged as a financial regulatory authority which regulates and controls the capital market and the financial services in New Zealand very effectively and efficiently. And it works on the financial risk bearing factors and majorly contributes towards developing trustworthy, clear and well regulated financials markets by executing various roles. In order to address the ever existing issues of divided regulatory body, the ultimate aim of creation of FMA by the Government of New Zealand was to replace security commission. Further the Primary objective of creating new single operator was to unify the market administration activities as the security commission faced many criticisms and faltered on the main function of regulating the market in order to give stability to the financial sector and thus resulted in ceasing of security commission. In 2011, when the financial markets authority act 2011 (FMC ACT) has been sanctioned and came into action on 1 may 2011, certain changes were made and one of the most important changes by this enactment is the introduction of new reinforced regulatory body. The FMA was designated under the crown entity act 2004, with supreme powers to monitor and control the financial markets by revoking the authorities of
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