Submissions sought on trustee regulations

Commerce Minister Simon Power is calling for input on the securities trustees and statutory supervisors regulations.The regulations, which were released in a discussion document today, will give certainty to the Securities Commission and the industry about how the Securities Trustees and Statutory Supervisors Bill will be applied in practice.They will also ensure that the costs of the regime are fairly distributed and will include provisions to strengthen trust deeds.

Commerce Minister Simon Power is calling for input on the securities trustees and statutory supervisors regulations.

The regulations, which were released in a discussion document today, will give certainty to the Securities Commission and the industry about how the Securities Trustees and Statutory Supervisors Bill will be applied in practice.

They will also ensure that the costs of the regime are fairly distributed and will include provisions to strengthen trust deeds.

The bill is intended to protect investors' interests and enhance market confidence by requiring corporate trustees and certain statutory supervisors to be licensed.

It also enables the Securities Commission to hold them accountable for failing to meet the expected standards.

The regulations will specify:

• How the Securities Commission must assess applicants against the licensing criteria set out in the bill.

• The contents of the reports that trustees will provide to the commission every six months.

• The fees and levies to ensure the regime is operated on a full cost-recovery basis.

• Certain additional terms for trust deeds for debt issuers.

Mr Power is encouraging stakeholders to comment on the proposals in the discussion document.

“Industry input and feedback will be invaluable in ensuring the regulations we put in place are sound and robust,” he said.

The regulations will support the bill, which recently reported back from the Commerce Select Committee.

Mr Power said he welcomed the changes the select committee made.

The discussion document is available here

Submissions close on 17 November and can be sent electronically to trustees@med.govt.nz.