Securities Regulation changes out for consultation

A discussion document proposing changes aiming to reduce compliance costs, improve flexibility for issuers and disclosure to investors has been released, Commerce Minister Simon Power said today.

The document has been released in response to recommendations of the Capital Market Development Taskforce and proposes changes to the Securities Regulations 1983.

The taskforce’s interim report has already resulted in the development of the Securities Disclosure and Financial Advisers Amendment Bill currently before select committee, and changes to the NZX listing rules.

"The proposed amendments will be a welcome step forward for companies seeking to raise capital," Mr Power said.

"Many of the changes will significantly reduce compliance costs for issuers. Others will increase flexibility for issuers and improve disclosure to investors.

"The regulations have been in force for more than 25 years and the review provides a good opportunity to update many aspects of the regulations that have not kept pace with developments over that time."

Among other things, the proposed amendments will:

Align the financial information in prospectuses with the requirements of applicable financial reporting standards and generally accepted accounting practice more broadly.

Expand the definition of borrowing group for the purposes of disclosure by debt issuers so it includes guaranteeing parent and sister companies, as well as guaranteeing subsidiaries.

 

* Provide more flexibility in respect of matters that may be included in advertisements.

 

* Align the requirements around the disclosure of directors', promoters', and managers' interests across the different types of issuer.

"I encourage interested parties to provide submissions on the proposals in the discussion document, and look forward to hearing their views," Mr Power said.