Regulatory Alerts2022-05-17
Submission on the Financial Market Infrastructures Bill Exposure Draft
The Reserve Bank of New Zealand submitted comments on the exposure draft of the Financial Market Infrastructures Bill, focusing specifically on the proposed criminal offences and penalties. The submission argues that criminal sanctions are disproportionately punitive for certain non-compliance areas, such as rule publication and contingency planning, which should instead be addressed through proportionate civil mechanisms. It further contends that the procedural protections associated with criminal law are unnecessary for sophisticated market participants and warns that excessive criminalization may deter capable operators from the industry.
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