New securities law for investment advisers and market participants from 29 February 2008
The Minister of Commerce, Hon Lianne Dalziel, today announced that changes to securities law made when the Securities Legislation Bill was passed in October 2006 will come into force on 29 February 2008.
The changes include new law on market manipulation and new disclosure requirements for investment advisers. There are also changes to insider trading law and disclosure by substantial security holders.
The Securities Commission is preparing a Guide to New Securities Law 2008 which explains these changes. This is expected to be available electronically from http://www.newsecuritieslaw.govt.nz/ before Christmas. Hard copies of the Guide can be ordered for delivery in the new year by registering on http://www.newsecuritieslaw.govt.nz/
New financial disclosure regulations to start in Feb 2008
Investment advisers will be required to provide up-front disclosure of fees and remuneration including commission from 29 February 2008, Commerce Minister Lianne Dalziel announced today.
This gives the industry three months notice to prepare for the regulation changeover and Lianne Dalziel is confident this is more than enough time for the new processes to be put in place and for the Securities Commission to implement its education programme targeted to investment advisers.
"The Securities Market Act was passed last year and there has been considerable consultation on the draft regulations since then so investment advisers are well aware that the regulations governing its implementation are on the horizon. Many advisers have already updated their disclosure practices in anticipation of the new requirements," Lianne Dalziel said.
"I have no doubt they will be pleased that a commencement date has been set so full disclosure applies to everyone."
Lianne Dalziel said that the flaw in the previous disclosure regime was that although investment advisers had to make certain disclosures without being asked, important disclosures around commissions, for example, only needed to be made when they were requested.
"This led to the real problem that the least experienced investors, who arguably need the most protection, didn't know to ask for that information."
Lianne Dalziel said that the regulations giving effect to the legislation were approved by Cabinet today. Further information is available on the Ministry of Economic Development website: www.med.govt.nz
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