Securities Commission Considers NZX Referral

17 May 2006

Securities Commission Considers NZX Referral

The Securities Commission has received a referral from the NZX relating to comments reported to have been made by the Telecommunications Minister David Cunliffe on Telecom’s dividend policy.

The NZX referral was made on the basis of complaints from market participants that the Minister’s reported comments may have resulted in trading in Telecom’s shares when the information was not available to the whole market.

“The Commission’s purpose is to strengthen investor confidence and foster capital investment in New Zealand,” temporary Deputy Chairman Lloyd Kavanagh says.

“This depends on well informed markets and high standards of disclosure. The markets are best served when investors have equal access to material information, so that they can trade on the same information at the same time.”

The Commission is considering the referral and has no further comment at this time.

ENDS

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