20 May 2014

Feedback sought on disclosure statements

Commerce Minister Craig Foss is welcoming feedback on the content of financial product disclosure statements.

The third exposure draft of regulations under the Financial Markets Conduct Act 2013 was today released for public consultation.

“The Government is continuing to drive a cultural change within the finance sector with a renewed focus on simple, meaningful and more accessible information for investors,” Mr Foss says.

“One proposed regulation limits the length of product disclosure statements to 60 pages for equity products, including IPOs, 30 pages for debt products and 12 pages for KiwiSaver and other managed funds.”

The information investors receive in a product disclosure statement will be supplemented by an online register of financial offers, where investors can find further information.

Mr Foss says the successful implementation of the Financial Markets Conduct Act will build high-performing capital markets.

“This is a key component of the Government’s Business Growth Agenda. Better regulation leads to increased confidence and participation in New Zealand’s capital markets, generating improved outcomes for New Zealand businesses.

“This final consultation round will address any remaining technical issues before the regulations come into force on December 1,” Mr Foss says.

The consultation period closes 20 June 2014.

More information is available on the MBIE website: http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act

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