Substantial security holder regime to be reviewed

A discussion document for reforming New Zealand’s substantial security holder disclosure regime was released today by Commerce Minister Lianne Dalziel.

The regime aims to keep the market informed over the ownership of significant holdings in listed companies and to act as a deterrent to insider trading by making transparent any significant transactions.

"The review is part of a programme of reforms relating to securities law which is in keeping with a key Government objective of promoting confidence in the New Zealand market.

"New Zealand's substantial security holder disclosure regime has been in force for 13 years and this review will consider the effectiveness of the current regime and whether improvements can be made to make disclosure easier and to reduce the associated compliance costs.

"Among issues that need reviewing is the way in which the regime deals with different classes and types of securities, and some uncertainty as to whether it covers collective investment schemes. There is also anecdotal evidence that raises concerns as to whether disclosures are being made as promptly as they should be," Lianne Dalziel said.

The Minister said that with significant changes already being made to securities market legislation, the time was right to also examine the substantial security holder regime to enable a consistent approach.

Among other reforms completed or currently in progress are the coming into force of the Takeovers Code, the Securities Markets and Institutions Bill, and the release of three discussion documents on securities trading law. Anyone wishing to comment on the discussion document can do so by making a written submission by 20 December 2002. Interested parties can contact Dean Seymour on (04) 470 2318 or on mailto:dean.seymour@med.govt.nz The document is available at http://www.med.govt.nz/buslt/bus_pol/bus_law/ssh/index.html .

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