Securities Bill gives investors confidence
Hon Lianne Dalziel
Minister of Commerce, Minister for Small Business,
Minister of Women’s Affairs, MP for Christchurch East
13 October 2006 Media Statement
Securities Bill gives investors confidence - Minister
Commerce Minister Lianne Dalziel said investors can have greater confidence in New Zealand's securities markets with the introduction of a stronger regulatory framework under the Securities Legislation Bill just passed by Parliament.
“The legislation creates the regulatory conditions for boosting investor confidence and participation; enhancing the integrity of our financial markets; and ultimately assisting economic development by increasing investment in New Zealand,” Lianne Dalziel said.
The Bill, which completed its passage through Parliament last night, amends the Securities Act 1978, the Securities Markets Act 1988, as well as the Takeovers Act 1993 and the Takeovers Code.
Lianne Dalziel said this Bill was an important part of the government’s wider securities law reform programme. The main provisions of the Bill include:
- A new insider trading regime focused on the damage such conduct poses to the efficiency of, and confidence of investors in, financial markets;
- Comprehensive prohibitions against market manipulation – conduct creating a false impression of securities trading activity, price movement, or market information;
- Simplifying and better targeting the substantial security holder regime;
- Improving investment adviser and broker disclosure law by requiring important additional information to be disclosed to clients before giving advice, and by making all disclosures mandatory. Also, the Securities Commission is given a public enforcement role in this area; and
- A complete overhaul of the size and range of penalties and remedies available under securities and takeovers law aimed at deterring illegal behaviour and encouraging compliance.
Lianne Dalziel said that while most of the Securities Act and Takeovers Act changes would take effect immediately, some of the changes, such as the new insider trading and market manipulation regimes, would come into effect once regulations have been made.
Lianne Dalziel said there would be advance notice before the regulations take effect so that the markets have time to prepare for the new regimes.