Minister welcomes discussion document on securities law
Tuesday 22 June 2010, 6:08PM
By Simon Power
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Commerce Minister Simon Power today called for public submissions after releasing a discussion document on New Zealand's securities law.
The document proposes replacing the Securities Act 1978 and the Securities Markets Act 1988, as well as amending other relevant legislation.
"These proposed changes will contribute to strengthening and improving our financial markets, as well as restoring mum and dad investor confidence to invest in those markets," Mr Power said.
The document picks up many of the recommendations of the Capital Market Development Taskforce, and builds on the establishment of a new market regulator, the Financial Markets Authority.
The proposals also compliment changes to financial sector regulation, including the Financial Advisers Act 2008, the Financial Service Providers (Registration and Dispute Resolution) Act, the Securities Trustees and Statutory Supervisors Bill, and changes to improve the regulation of KiwiSaver schemes.
"This review aims to strike a balance between open markets and the prudent stewardship of investors' money," Mr Power said.
"The Government cannot and will not legislate for risk, but we can build a regime that makes those risks more transparent."
The discussion document seeks views on:
Which financial products are to be regulated and how.
Tailoring of disclosure requirements to better suit a retail investor audience.
Improving governance of managed funds, which are a key product for retail investors.
Possible additional powers for the Financial Markets Authority.
Submissions to the Ministry of Economic Development close on 20 August. Copies of the document are available here.