Securities law is in for a massive shake up if changes recommended in a discussion document go ahead.Commerce Minister Simon Power has called for public submissions on the document which proposes replacing the Securities Act 1978 and the Securities Market
Securities law is in for a massive shake up if changes recommended in a discussion document go ahead.
Commerce Minister Simon Power has called for public submissions on the document which 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," he said.
The document picked up many of the recommendations of the Capital Market Development Taskforce, and built on the establishment of a new market regulator, the Financial Markets Authority, he said.
The proposals also complemented 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."
Views would be sought 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,
- possible additional powers for the Financial Markets Authority.
Submissions to the Ministry of Economic Development close on August 20.
