Reform of Securities Act 1978
24 September 2008
MED officials have begun scoping a broad project around the reform of the Securities Act 1978, which will include further consideration and seek decisions of the policy issues identified in the Review of Financial Products and Providers.
Some of the issues to be included in this project include the following:
- An examination of the definitions of a security, and the relevant exemptions (including, for example, examining how real property ought to be treated for the purposes of securities regulation and the definition of "sophisticated investor");
- An examination of the disclosure requirements on securities issuers (including, for example, an examination of the effectiveness of the current disclosure forms);
- A review of the current roles and functions of the Securities Commission in the light of, for example, the additional responsibilities from the Financial Advisers Act 2008;
- A review of the penalties and enforcement framework for the Securities Commission, given their new functions; and
- A review of the regulatory framework and supervision around fund managers and trustees.
These initiatives to strengthen the regulatory framework and build capital markets cannot come at a more crucial time for New Zealand. Recent turmoil in the markets has strengthened the need to ensure that the financial sector is properly supervised and regulated.
Back to Top