New financial controls "good"
The Institute for Financial Advisors says the Financial Markets Conduct Bill, which had its first reading yesterday, “looks like a good piece of legislation”.
The Institute for Financial Advisors says the Financial Markets Conduct Bill, which had its first reading yesterday, “looks like a good piece of legislation”.
“In principle we are happy with the thrust of the bill. Anything which brings confidence to the markets and to consumers is a good thing,” said IFA chief executive, Peter Lee.
The purpose of the bill is to provide confident and informed participation in New Zealand’s financial markets.
It is hoped investor’s confidence will be boosted by ensuring they are provided with understandable and accurate information to guide their decision making, that governance arrangements in respect of financial products available to the public are robust, promoting effective competition and minimising unnecessary compliance costs for raising capital.
The bill is replacing the Securities Act and the Securities Markets Act and includes a modified liability framework for breaches of securities law, with reckless and intentional breaches resulting in criminal liability and penalties of up to 10 years' imprisonment and fines of up to $1 million for individuals and $5 million for companies.
It also provides for civil pecuniary penalties of up to $1 million for individuals and $5 million for companies if they make misleading statements in a product disclosure statements and advertisements.
Interested parties will make submissions during the upcoming select committee process and the bill is expected to have its second reading in October.
IFA president, Nigel Tate said that while there were no parts of the bill which directly impacted members of the IFA at this stage, the organisation would be following its progress.
“We will have a watching brief of its progression and will comment on issues we consider relevant,” he said.
Melody Brandon
Fri, 09 Mar 2012
Fri, 09 Mar 2012
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New financial controls "good"
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