An Underused Sanction with Great Potential: the Use of Enforceable Undertaking by the New Zealand Securities Commission

As a result of the global financial crisis, weaknesses in New Zealand’s securities law regulatory regime became more apparent. Reviews and reforms are currently being undertaken and implemented to ensure the robustness of the regulatory system. For example, the Financial Markets Authority Act 2011 has introduced a new regulator, the Financial Markets Authority, to take the place of the New Zealand Securities Commission and to regulate securities laws. To achieve this, the Financial Markets Authority has been provided with a number of investigatory and enforcement powers. This article briefly considers the evolution of the securities law regulatory regime in New Zealand then focuses on the role of the Financial Markets Authority and the powers that are at its disposal. The article suggests that an in-depth study of the powers and sanctions that are available to the Financial Markets Authority should be undertaken before making further changes to the regulatory system