Commerce Minister Paul Swain has welcomed the release of a discussion paper on New Zealand’s current insider trading regime.

“There is a perception in the market that the current New Zealand insider trading regime is inadequate” Paul Swain said.

“This review will be an important first step towards ensuring New Zealand has an insider trading regime that reassures investors that insider trading does not go unpunished and that the gains in the securities market are not limited to those with access to privileged information.

“The discussion document focuses primarily on improving the prevention of breach, detection and enforcement of the current New Zealand insider trading regime and the possibility of introducing criminal penalties.

“The discussion document also seeks views on the definition of insider trading and the adequacy of the other core provisions of the legislation governing insider trading.

“It is envisaged that particular attention will be given to coordination with Australia in this area “Paul Swain said.

The discussion document will be released on Thursday 7 September for consultation over a six week period. The submissions will provide the basis for recommendations for change to the current insider trading regime.

Anyone wishing to comment on the Insider Trading discussion Document may do so by making a written submission. Submissions will close on Friday 13 October 2000. Interested parties should contact Kirstie Drake on (04) 474 2887 or by email on kirstie.drake@med.govt.nz if they wish to receive a copy of the Discussion Document. An electronic copy is also available on:
http://www.med.govt.nz/buslt/bus_pol/bus_law/insidertrading/index.html

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