Weldon wants holes in financial regulation fixed
NZX chief executive Mark Weldon believes that fixing "black holes" in the regulation of financial products in New Zealand could usher in a new era for capital markets.
His comments come as the Capital Market Development Taskforce presents its final report to Commerce Minister Simon Power. The report recommends the setting up of a new capital markets regulator and other measures to strengthen New Zealand financial markets.
"2010 could be an absolute banner year if the Government is of a mind to make some meaningful structural change and they will be completely supported," Mr Weldon told NZPA.
He said the financial adviser sector needed a clean out and he was hopeful that the tax working group would put forward ideas that would be positive for equalising investment between companies and property.
He said there was also a "massive big hole" in regulation in that finance companies and others could "regulatory arbitrage" or effectively opt out of regulation by not being listed on the NZX.
They were able to sell products to the public but faced no ongoing monitoring, whereas companies listed on the NZX faced ongoing market discipline.
"We have a broken Securities Act which allows a dark cave where people can hide in what I would call the unlisted public sector."
The Securities Act was all about allowing capital raising but not ongoing information.
"This allows the companies to opt out from providing information, or they go into moratorium and they haven't got a regulator at all."
"It just has to get fixed when we deal with the Securities Act next year," he said.
Proper regulation of all financial products and all institutions that raise money from the public was needed. He noted that Hanover Group was not listed but it was hard for casual investors to identify a company like it as listed on a market or not.
Having consistent regulation for all financial advice was important.
"Investors need more product and better advice," he said.
"I think New Zealand would be better off with one at scale regulator that had an at scale enforcement division and had a really good enforcement culture."
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Comments
What a Joke
Having just finished reading the CMD Taskforce report I can only conclude that these fools are on a different planet. When are the likes of Simon Power going to learn that getting vested interest reports done is just a waste of time and money. If Weldon believes what he says why is it not relected in the report in any real sense. There is virtually no mention of enforcement, the lack of which is clearly one of the main problems with our capital markets.
boys club
Mark Weldon wants more companies to be listed rather than unlisted so that he can click the ticket and get rich. Why go public with all the associated costs, give way and stop signs. Unlisted or private equity is the way to go to avoid all those onerous costs that make business tiresome.
The horse has bolted Mark
Mark Weldon are you serious, where were you when it counted four or five years ago.
One of the reasons the NZX is becoming irelavent is because in an economy that is lauded as being free of corruption and easy to do business is exactly the same economy where investors have no protection.
Clegg defrauds investors of $15M (appologies if the figure is wrong) and after being found guilty as charged he is going to spend 12 months on home detention. It is a farse.
Petrecivich and Bryers are still walking around as free men, living the life that they had become accustomed whilst ripping off naive investors.
You needed to be shouting from the roof tops ages ago.
2010 being a banner year because of Governmental changes to the capital markets !!! Perhaps if Diplock is fired, and some of the ratbags listed above end up in jail.
Enough already, and by way of background I do not invest in any finance companies, any companies that can not stand the rigours of listing on the ASX or other reputable stock exchange.
Mark Weldon has just woken
Mark Weldon has just woken up after five years and realised that no one will invest in his toy share market because the crooks get preferential treatment over the retail investor. Please Mark share your other brain waves with us. We eagerly await what every one else already knows (perhaps your university degree should have been in common sense rather than just theory).
very self-serving
Not that there is anything wrong with being self-serving, but isn't it obvious that if there are so many benefits of listing on a registered securities exchange, then more issuers would be lining up. Investors can choose between an investment listed on a registered exchange, one that isn't, or one on some foreign exchange.
it is not "regulatory arbitrage" but freedom itself, for both issuers and investors. I think there should be a lot more of it, too!
Mark Weldon what planet are you on?
This guy Weldon is a joke.....no one trusts the NZX or his leadership.
The NZX supported the Securities Act changes to change to thin company consitutions to give Directors more control of raising capital. Contrast that with Risk Metrics.com who says do not invest in NZ stock because the safeguards for stockholders have gone.
We only have 4 companies left with shareholder safe constitutions left, and we complain about lack of institutional investors.
No one trusts the cosy club of NZ Directors because the NZX allows gross indecencies to be conducted by companies and their Directors.
Take Keith Smith Chairman of two listed indecently closely related (Shareholding and Business contracts) companies PGW and NZS. At the PGW AGM Smith admitted he had a conflict of interest. What has the NZX done about it - absolutely nothing........
Weldon needs to get his act together, waitng 5 years is painfully to long. Weldon should be leading a shareholder revolution to get more respect for shareholders.
The Weldon PR Machine Goes into Action
The CMDTF publishes its report and Weldon can't resist piggybacking the media coverage. How come every time he does a press release its accompanied by a smarmy smiling picture? Is NBR in love with him or what? Yes, yes, we need more listed companies. Why? How many countries with 4m people have a substantial stock exchange anyway? Here's hoping the NZX gets swallowed by the ASX; good for us all.
NZX
the NZX as a independent bourse will be no more in 5 to 7 years. it will either collapse or be swallowed up by the ASX or one of the Asian bourses purely to have a head start on trading each new day.
the NZX should have merged with the ASX 10 years ago when it had some life and become a feeder and incubator for the ASX.
Now its too late for that as we dont have any visionaries left
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