FMA and SFO sign Memorandum of Understanding

19 January 2012

FMA and SFO sign Memorandum of Understanding

The Financial Markets Authority (FMA) and the Serious Fraud Office (SFO) have signed a Memorandum of Understanding (MOU) which will enhance their already close working relationship and drive greater efficiencies between the two agencies.

The initiative, announced by FMA Chief Executive Sean Hughes and SFO Chief Executive Adam Feeley, provides a framework within which the organisations can co-ordinate their activities, exchange information and share expertise and resources.

The FMA and SFO share an objective of improving confidence in New Zealand’s financial markets. Greater co-ordination between them will enable efficient allocation of their investigation and prosecution resources.

FMA and the SFO have already shared resource and intelligence on a number of finance company investigations, including Dominion Finance, Belgrave Finance, and Hanover Finance. Last month it was announced FMA would support the SFO’s case against five individuals involved with the affairs of South Canterbury Finance.

A copy of the Memorandum can be found here.

Role of FMA

The Financial Markets Authority enforces securities, financial reporting, and company law as they apply to financial services and securities markets.

We also regulate securities exchanges, financial advisers and brokers, trustees and issuers - including issuers of KiwiSaver and superannuation schemes. Shortly we will also regulate auditors.

Role of the SFO

The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time. The SFO is a criminal law enforcement agency tasked with the investigation and prosecution of serious or complex fraud and financial crime. Its Financial Markets and Corporate Fraud team specialise in addressing criminal offending in financial services and securities markets.

The SFO’s Annual Report 2011 summarises its performance for the past year. The Statement of Intent 2011-2014 sets out the SFO’s three-year strategic goals and performance standards. Both are available online at: www.sfo.govt.nz

ENDS

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