Financial misconduct should be civil not criminal matters
He says enforcement is high up the political and public expectations of the FMA with the Minister's mantra being: "...visible, proactive, and timely enforcement"
Mayhew says he is struck by the prevalence in New Zealand of the use of the criminal justice system in financial matters despite the fact it is a blunt instrument with the capacity to produce unexpected results.
Unless there is compelling evidence of fraud or dishonesty of a criminal standard, misconduct in financial markets is better dealt with, in Mayhew's view, by a civil fining regime.
For example, he says in the UK since 2000 and now across the European Union there is the market abuse regime dealing with misuse of confidential information, misleading statements and practices, and market manipulation, which sits alongside the criminal law and is dealt with by the Financial Services and Markets Tribunal.
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