Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Strengthened securities trading law

24 July 2003 Media Statement

Strengthened securities trading law

Commerce Minister Lianne Dalziel today announced proposals to strengthen New Zealand’s securities trading law.

“The government wants to promote confidence and participation in New Zealand’s securities markets to ensure that businesses can access the capital they need to grow. This involves strengthening the regulatory framework to encourage investment and enhance market performance,” Lianne Dalziel said.

“The first two stages of the government’s programme to strengthen our securities law were completed with the implementation of the Takeovers Code in July 2001 and legislation arising out of the Securities Markets and Institutions Bill came into force on 1 December 2002.

“The next phase, the Securities Trading Law Review, has been designed to increase the effectiveness and efficiency of law relating to the trading of securities and futures on registered securities exchanges and authorised futures exchanges,” Lianne Dalziel said.

In particular the government is introducing:

- A new insider-trading regime.
A number of problems have been identified with the current insider-trading regime in the Securities Markets Act 1988. The new regime will focus on preventing the negative market impact of using inside information (the market efficiency rationale) rather than focussing on breaching fiduciary duty, as with the current regime. The new regime will cover a wider range of behaviours that is widely acknowledged as being insider trading. The regime will contain some exceptions to ensure that certain types of behaviour, which are necessary for market efficiency, are still allowed to occur. This includes, among others, exceptions for research and analysis, takeovers, underwriters, Chinese walls and transactions where the counter-party to the transaction knows of the inside information.

- More prohibitions on market manipulation.
Including a general ban on misleading or deceptive conduct relating to securities and more specific bans on misleading or deceptive statements and the creation of a false or misleading appearance as to the supply of, or demand for, or the price or value of a security.

These prohibitions will form a comprehensive and effective regime against market manipulation that has sufficient flexibility to deal with any new forms of manipulation that may appear.

- Amendments to the law relating to investment advisers.
This is to improve the disclosure regime, make the illegal offers of securities an offence, strengthen the enforcement of investment adviser law, include sufficient flexibility to deal with special circumstances and reduce compliance costs and increase certainty. These changes will significantly strengthen investment adviser law and enforcement.

- Tougher penalties and remedies for breaching securities trading law.
This includes, among other things, introducing criminal and civil penalties and making the remedies available for breaches of the Securities Act and Securities Markets Act consistent across the board. The reforms also ensure that the Commission has an enforcement role in all breaches of securities law.

- Minor improvements to the Substantial Security Holder regime
This involves a number of minor improvements to the regime.

- Improvements to the application of securities trading law
This improves the way the law applies to certain financial products and entities.

“Ministry of Economic Development officials are now drafting a Securities Trading Law Reform Bill. Targeted consultation will be carried out on the draft Bill later this year before it is introduced to Parliament,” Lianne Dalziel said.

In making the announcement, the Minister also released Cabinet papers relating to these decisions. These can be viewed online:

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election