Progress report on Capital Markets welcomed

Commerce Minister Simon Power today welcomed the release of the Capital Market Development Taskforce's Progress Report.

The report identifies a number of the major issues faced by New Zealand's capital markets.

"These include relatively underdeveloped capital markets, low levels of investment in capital market products, and some poorly regulated market participants and practices," Mr Power said.

The report also outlines the potential shape of the taskforce's final report.

"I am very encouraged by the direction the taskforce is taking. It is clearly focused on identifying steps that will help deepen New Zealand's capital markets at a time when companies are struggling to access capital. They clearly see investor confidence as a critical ingredient for the deepening of markets.

"These concerns are well aligned with my priorities in the commerce portfolio, which include a fundamental review of the Securities Act and successful implementation of the new financial advisers regime."

Mr Power says the quality of the taskforce's work is reflected in the large number of recommendations contained in its November interim report which the Government subsequently implemented. This includes passage last week of the Securities (Disclosure) Amendment Bill which creates a new simplified disclosure prospectus regime for listed companies and makes a number of amendments to the private capital raising regime.

Background

The Capital Market Development Taskforce is an industry-led group established to produce a plan to develop New Zealand's capital market. The taskforce comprises both private and public sector participants, including officials from Treasury, Reserve Bank, Inland Revenue Department, and Ministry of Economic Development.