Hon Simon Power
Minister of Commerce

26 May 2010 Media Statement

Capital Market recommendations progressing well
Commerce Minister Simon Power today released a progress report on the Government’s response to the Capital Market Development Taskforce.

Last December, the taskforce made 60 recommendations as part of a blueprint for the development of capital markets.

“The Government agrees with the taskforce’s views that capital markets are key to improving the financial wellbeing of all New Zealanders and a vital source of finance for business,” Mr Power said.

“We need to rebuild mum and dad investor confidence in capital markets by developing opportunities for people to invest.

“That’s why we’ve brought forward the implementation of a number of the taskforce’s recommendations, including fast-tracking of the creation of a new financial regulator, the Financial Markets Authority, and improving KiwiSaver regulations.

“Overall, the report shows the action plan is largely on track, with a number of initiatives to be covered off by the review of the Securities Act.”

A discussion document is due to be released on changes to the Securities Act next month.

The taskforce’s recommendations to strengthen and better target the Financial Advisers Act are also being progressed.

“Improving financial literacy is also important. As the Minister in charge of this I’ve had meetings with relevant agencies to identify overlaps and gaps in the work. A stocktake is now under way to improve financial literacy efforts.

“Budget 2010 also introduced measures to reduce tax biases between different types of investments, including depreciation on most buildings. Further tax issues identified by the taskforce are being investigated, as are recommendations to support capital market development by expanding the range of government bonds.

“Work is also on track for New Zealand to become an exporter of high-value middle- and back-office services for fund management companies. The International Fund Services Development Group has been formed and is due to report back to Ministers at the end of the month.”

Mr Power said he was happy with where the Government’s work on capital markets was at.

The progress report can be viewed here

ENDS

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