Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Investors benefit from new market regulations

Hon Simon Power
Minister of Commerce
19 May 2011

Investors benefit from new market regulations

The Government’s new regulatory framework for financial markets contributes to Budget 2011’s focus on savings and investment.

“Over the past two-and-a-half years, my priority in the Commerce portfolio has been to put in place a regulatory framework that attracts investors back to our capital markets,” Commerce Minister Simon Power says.

“The Government has committed extra resources to ensure investors have access to the information they need to make informed decisions about their investments.

“This includes extra funding of $6.8 million to cover the first period of the Financial Markets Authority’s operating and litigation costs, and new capital investment of $5 million in 2011/12, to cover the cost of office facilities for increased staff numbers and new IT infrastructure and applications.

“New Zealand’s capital markets are the key to improving the financial wellbeing of all New Zealanders by providing a vital source of finance to help our businesses grow.

“Since November 2008, the Government has made significant improvements to the financial landscape to help restore mum and dad investors’ confidence in our markets, as well as making our markets work better for those seeking to raise capital.”

Reform of the financial sector has included:

• Requirements for all financial service providers, including financial advisers, to be registered and belong to a dispute resolution scheme.

• Implementation of the financial adviser regime to encourage public confidence in the industry. This comes fully into force on 1 July.

• Prudential regulation of non-bank deposit takers.

• Licensing of auditors by a professional accounting body.

• A licensing regime for trustees to strengthen the quality of the supervision provided by trustees.

• Changes to securities legislation and regulations, in response to recommendations from the Capital Market Development Taskforce, aimed at making it easier for businesses to raise capital, while ensuring timely and accurate disclosure of information to prospective investors.

• Requiring debt issuers, including finance companies dealing with moratoria, to give investors tailored disclosure documents.

• Improving the governance of KiwiSaver schemes by requiring that KiwiSaver schemes have a designated manager, and providing a regulation-making power for the Government to impose periodic reporting requirements on KiwiSaver issuers.

“These changes have all been important, but the most important has been the establishment of the new one-stop-shop Financial Markets Authority (FMA).”

The FMA is equipped with extra functions, duties, and powers to keep New Zealand’s financial markets working for mum and dad investors, including:

• The power to exercise another person’s right of action against a financial market participant.

• Tools for actively monitoring and enforcing securities law.

• Enhanced warning powers, and a regulation-making power to better regulate unsolicited ‘low-ball’ offers.

• A new oversight regime for registered exchanges, including the ability to undertake real-time surveillance of market activity.

• Enabling regulations to help ensure that financial instruments cannot be structured to avoid securities legislation.

“We’re also working on a once-in-a-generation opportunity to modernise our securities law and I will release an exposure draft of the new legislation later this year,” Mr Power says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Clark Exit, Convention Centres, And The Killing Of Hachalu Hundessa

Goodbye, David Clark. In the end, the outgoing Health Minister decided that in the midst of a pandemic the best thing he could do for New Zealand would be to no longer be there – given that being there had involved hiving off on his mountain bike during a lockdown, and throwing the country’s most beloved Health bureaucrat under a bus. As Clark indicated so memorably at last week’s press conference, when it comes to managing public health risks at the border the buck stops with…that guy over there! In the aftermath of that debacle, Clark reached the same conclusion the nation had reached some time ago, that leadership just wasn’t his thing. Once again, he got on his bike.... More>>

Government: David Clark Resigns As Health Minister

The Prime Minister Jacinda Ardern has accepted David Clark’s resignation as Health Minister. More>>


Election 2020: Green Party Unveils Income Policy

The Green Party is today unveiling its Poverty Action Plan, which includes a Guaranteed Minimum Income to ensure people have enough to live with dignity. The scheme resets income support payments to ensure everyone not in full-time paid work gets at least ... More>>


Conservation: New Protection For Dolphins

Extensive new protections are being put in place as part of an updated plan to look after New Zealand’s native Hector’s and Māui dolphins, announced Minister of Fisheries Stuart Nash and Minister of Conservation Eugenie Sage today. More>>


Auckland: Water Consent Referred To Board Of Inquiry

Environment Minister David Parker has today “called in” Auckland’s application to the Waikato Regional Council to take an extra 200 million litres of water a day from the lower reaches of the Waikato River for Auckland drinking water and other municipal uses... More>>


Gun Law: A New Firearms System Focused On Safety

Tougher gun laws will begin to take effect from next week following the passage of new firearms legislation through Parliament today. The Minister of Police says the Third Reading of the Arms Legislation Bill is an historic milestone for community ... More>>


Government: Building A Stronger Health And Disability System

The Government is committing to a long-term programme of reform to build a stronger New Zealand Health and Disability System that delivers for all. More>>


National: Todd Muller Announces Caucus Reshuffle

Today I am confirming a minor shadow cabinet reshuffle due to the retirement of Paula Bennett. Dr Shane Reti will be ranked number 13 and will take on Associate Drug Reform. Shane has demonstrated a huge intellect and capacity for work, supporting ... More>>

Biosecurity: Winston Peters On EU Travel: 'We're Not Going To Compromise Our Country's Health'

Foreign Minister Winston Peters says New Zealanders who head to Europe on holiday should pay for their two weeks' hotel quarantine when they return. More>>

Economy: Infrastructure Investment To Create Jobs, Kick-Start COVID Rebuild

A new package of infrastructure investments will help kick-start the post-COVID rebuild by creating more than 20,000 jobs and unlocking more than $5 billion of projects up and down New Zealand. Finance Minister Grant Robertson and Infrastructure Minister ... More>>


Covid-19: Isolation System To Be Beefed Up After Stress

A range of improvements are already underway to address issues identified in the rapid review of the Managed Isolation and Quarantine system released today, Housing Minister Megan Woods said. The review was commissioned just over a week ago to identify ... More>>


Election 2020: Parties Get Into Gear

ACT has today announced its list for the 2020 General Election. “The calibre and experience of our candidates will impress voters of every persuasion. We have candidates from all walks of life. People who have built their homes, families and businesses ... More>>


Int'l Trade: New Zealand To Host Virtual APEC In 2021

Foreign Affairs Minister Winston Peters and Trade and Export Growth Minister David Parker announced today that New Zealand’s hosting of APEC in 2021 will go ahead using virtual digital platforms. Mr Peters said the global disruption caused by COVID-19, ... More>>






InfoPages News Channels