5 July, 2000 Media Statement
Securities Regulations Discussion Document

Commerce Minister Paul Swain has welcomed the release of a discussion paper on the first stage of the Securities Regulations review.

The Ministry of Economic Development and the New Zealand Securities Commission are releasing the paper today.

"This review is long overdue," Paul Swain said "“The Securities Act and Securities Regulations were introduced in 1978 and 1983 and the way we do business has changed dramatically since then.

"We want this review to lead to reduced compliance costs, greater flexibility and clarity in the application of the Regulations, and accessible and appropriate information for investors.

"This Stage One Document suggests solutions to immediate technical problems with the current regulations.

"It proposes things like modernising terms to make them technologically neutral and ensuring the regulations do not restrict the growth of electronic commerce.

"The proposals also try to remove confusion around provisions, duplication between the Securities Act 1978 and the Regulations and delete obsolete references," Paul Swain said.

Stage Two of the review will examine in depth the way in which the Regulations implement the policy of the Securities Act 1978 and will involve looking at different methods of regulating offer documents and advertisements for securities.

There will be a further consultation period at a later stage on Stage Two of the review. It is expected that Stage One and Stage Two will result in changes to the Securities Regulations 1983 and the Securities Act 1978.

ENDS

kerry.lamont@parliament.govt.nz

Anyone wishing to comment on the Stage One Discussion Document may do so by making a written submission. Submissions will close on the 25 August. Interested parties should contact Bronwyn Turley on (04) 470 2331 or by email at bronwyn.turley@med.govt.nz if they wish to receive a copy of the Discussion Document. An electronic copy is also available on http://www.med.govt.nz/buslt/bus_pol/bus_law/securityregs and www.sec-com.govt.nz.

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