FMA fears recklessness, tells investors: Don’t stop the party but turn down the music.
With the NZX 50 hitting record levels and a raft of new stock listings this year, the boss of New Zealand's market watchdog reckons it is time to "turn down the music" in case bullish investor confidence spills over into recklessness.
Financial Markets Authority chief executive Rob Everett told the 300-strong crowd at Saturday's Shareholders Association annual conference that quality market regulation was "no panacea" and it needed to be combined with investor caution.
"I'm not here to call a halt to the party - and I'm not sure I could even if I wanted to - but I am going to suggest turning down the music a little," he said.
Quoting former United States Treasury Secretary Timothy Geithner, Everett said regulators needed to "lean against the prevailing wind" when markets were rising amid buoyant sentiment.