508N Securities Law and Market Regulation in New Zealand

This subject provides students with an understanding of the legal system in New Zealand as it relates to the market. The subject will also provide an overview of the functions of key regulatory bodies, including the New Zealand Exchange Limited (NZX). Students will gain an understanding of how companies raise capital and establish a business or run existing ones, and the protection available to investors.

This subject is a compulsory subject for the NZX Diploma.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      • Explain the regulatory framework of the securities industry in New Zealand.
      • Outline the requirements for Market Participants and NZX Advisors.
      • Discuss the rights and obligations of the NZX Firm/client relationship.
      • Describe the listing and quotation of issuer’s securities on the NZX.
      • Outline the takeover provisions that apply to listed issuers.
      • Discuss the regulation of trading conduct in regard to workplace activities and provisions designed to prevent market misconduct.
      • Explain how companies differ from other business structures and identify the duties/rights of directors and shareholders.
      • Explain the regulatory framework of futures and options.
  • Subject outline
    • Topic Title
      Topic 1 Fundamental objectives of NZX and stockmarket regulation
      Topic 2 Bodies which regulate the stockmarket
      Topic 3 Listing and quotation of securities on NZX
      Topic 4 Continuing obligations of listed issuers under the Listing Rules
      Topic 5 Takeovers
      Topic 6 Business structures
      Topic 7 Effect of common law on Market Participants
      Topic 8 Relationship between Client Advising Participants and clients
      Topic 9 Statutory law protection of investors
      Topic 10 Market Participants and Advisors
      Topic 11 Trading conduct
      Topic 12 Futures and options regulation

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject. 

  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.