Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Unlisted Surprised By Regulatory Notice

December 15 2004

Unlisted Surprised By Regulatory Notice

Bevan Wallace, Chairman of Efficient Market Services Limited, which operates as the internet-based security trading platform Unlisted, expressed surprise and disappointment with the Minister of Commerce Margaret Wilson’s notice that she proposes to declare that Unlisted be required to operate as a registered exchange under section 36B of the Securities Market Act.

Mr Wallace said that if Unlisted is required to become a registered exchange it will severely undermine Unlisted’s business model and may render it unsustainable, or else will force Unlisted into direct competition with the NZAX.

“Requiring Unlisted to be registered would hinder the growth of small to medium-sized companies in New Zealand. It will raise their compliance costs and could result in companies invoking less formal share transfer practices. Unlisted as it currently operates improves the transparency around securities trading, which in turn improves the accountability of the companies concerned. That can only enhance New Zealand’s capital markets. Unlisted’s success to date confirms there has been a previously unmet need for these growing companies,” said Mr Wallace.

Mr Wallace also expressed disappointment that the Minister had given no opportunity for Unlisted to meet and discuss her concerns before announcing the declaration this morning.

“Unlisted was informed of this declaration only hours before it was publicised. We would expect to be afforded natural justice in such a process, and given a reasonable opportunity to discuss with the Minister and her officials the specific factors which led to this declaration and how they might otherwise have been addressed.”

“This move [to require Unlisted to be a registered exchange] will limit the depth and liquidity of New Zealand’s capital markets, and will likely drive the quoted companies back to over the counter trading of their securities by their company secretaries and the like. We expect that there will be many stakeholders, as well as Unlisted, who will want to express their views on the situation.”

Having received the notice Mr Wallace said that the Board would be considering the Minister’s comments in light of the Act, and providing submissions on the matter in due course as part of the consultation process.

“We welcome the opportunity for a full discussion of Unlisted’s operation, and are confident the outcome will require few, if any, changes.”

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>