Regulatory Alerts2023-07-31
FMI Standard 1: Legal Basis
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued this standard to mandate legal enforceability for designated financial market infrastructure operators. The rule requires operators to ensure their rules and contracts are legally binding across all relevant jurisdictions and supported by a legal opinion reviewed at least every two years. Additionally, operators must demonstrate high certainty that their actions will not be voided and must actively mitigate risks arising from conflicts of law in multi-jurisdictional operations.
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