Cabinet updates securities regulations

Cabinet has agreed to update the Securities Regulations 2009, Commerce Minister Simon Power announced today.

The updated regulations, which come into force on Friday, replace the current text about financial advice required to be included in investment statements. This will align it with the Financial Advisers Act 2008, which comes fully into force on the same day.

“The regulations do not require immediate revision of investment statements already in use or those currently being prepared,” Mr Power said.

“The old requirements will continue to apply to investment statements dated earlier than 1 August 2011. Issuers can, however, choose to comply with the new requirements from 1 July.”

The regulations also align with changes made under the Financial Markets (Regulators and KiwiSaver) Bill, including new prospectus requirements for retail KiwiSaver schemes.

“These changes are another important step in several important work streams designed to improve investor confidence in New Zealand’s financial markets."

The regulations can be accessed here.