Hon Craig Foss

Minister of Commerce
22 April 2013 Media Statement

FMC Bill Strengthened

Commerce Minister Craig Foss today announced further changes to strengthen the Financial Markets Conduct (FMC) Bill.

“The FMC Bill is a key pillar in the Government’s Business Growth Agenda. It will introduce a new era of financial market regulation that ensures investors are better informed and offered better protections,” says Mr Foss.

A Supplementary Order Paper (SOP) introduced today enhances the once-in-a-generation rewrite of securities law.

“These improvements will further bolster this Bill. It will make sure the rules are clear and cover all forms of financial markets services,” says Mr Foss.

The changes will:

• Raise the threshold for the disclosure exclusion for investors making a minimum investment from $500,000 to $750,000. Significant time has passed since the $500,000 amount was first set and this change reduces the risk that retail investors are inappropriately denied regulatory protections.
• Expand, for where offers are excluded from disclosure, regulation-making powers that provide for limited disclosure and other safeguards, such as investor certificates, to be required.

• Enable more effective regulation of discretionary investment management, custody and broking services. This may include mandatory audit and assurance and client reporting, to ensure that investor assets are being adequately safeguarded.

• Align the purpose statements of financial markets legislation, including the Financial Advisers Act and Financial Markets Supervisors Act, with the overarching purposes of the FMC Bill.

“The FMC Bill, and the changes I have announced today, will promote confident and informed participation of businesses, investors, and consumers in our financial markets. They will foster fair, efficient and transparent financial systems that are crucial to New Zealand’s future prosperity.

To view the SOP visit; http://www.legislation.govt.nz/sop/government/2013/0220/latest/DLM4734701.html

ENDS

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