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

 


NZX's new market gets ministerial go-ahead

NZX's new market gets ministerial go-ahead

By Suze Metherell

July 7 (BusinessDesk) - Commerce Minister Craig Foss has given the go-ahead on alternative disclosure requirements for the New Zealand stock market operator's proposed "new market".

The exemption will let the NZX's proposed market to skirt continuous disclosure requirements for listed companies, with less onerous disclosure obligations reducing costs for issuers in a bid to attract small to medium sized businesses to list. NZX must now satisfy the Financial Markets Authority that the market's rules will support the alternative disclosure requirements, before launching the new board.

The exemption will apply under the Securities Act until December, when the Financial Markets Conduct Act comes into effect. Cabinet has agreed to enact regulations to allow the exemption under the new law.

“An alternative disclosure regime will make it easier for firms to manage their disclosure obligations internally,” Foss said in a statement.“This could lower the cost of capital-raising for New Zealand’s smaller and high-growth businesses.”

“The new market may also give New Zealanders, who have the right risk appetite, a greater number of firms to invest in," he said.

Companies will be able to use key operating metrics to outline their business performance instead of more onerous prospective financial information requirements in their projections, and will be required to disclose information to investors periodically rather than continuously, according to draft rules released in March. The new market, which will ultimately replace the NZ Alternative Market, will have a different website with distinct branding from the NZX and a risk warning where investors acknowledge difference between the new market and other NZX markets.

The exemption is recommended by Ministry of Business, Innovation and Employment and supported by Financial Markets Authority.

Shares in NZX fell 1.5 percent to $1.32 today.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news