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Govt Look At Market Regulation Mergers

Fuseworks Media
Fuseworks Media
Simon Power
Simon Power

Wellington, Feb 18 NZPA - The Government says it is considering merging parts of the Companies Office, Securities Commission, and the NZX Disciplinary Tribunal into a new market conduct regulator.

Commerce Minister Simon Power today released the Government's action plan for responding to the Capital Market Development Taskforce report.

In December, the taskforce made 60 recommendations on the development of capital markets.

"The taskforce identified flaws in our markets and where there are opportunities for improvement, and we need to act quickly to fix them," Mr Power said.

"We need to rebuild mum and dad investor trust in capital markets which has been severely dented by the global recession and finance company collapses. We want everyday investors to feel more confident about putting their savings into capital markets, through understanding the basics of investment, getting advice they can trust, and making informed choices."

Mr Power said some of the recommendations the Government was committed to implementing were:

* Introducing plain English into investment statements and prospectuses, with warnings on risky or complex products;

* a more co-ordinated approach to the Government's role in improving the financial literacy of New Zealanders;

* ensuring the duties of fund managers and supervisors are clear and enforced;

* making it easier and cheaper for companies to raise capital privately by clarifying and broadening the exemptions to the Securities Act and Takeovers Act.

* improving risk management in the economy by supporting the development of derivatives markets in commodities and energy.

As well as steps to improve capital markets, the Government has started work on a business case to develop the taskforce recommendation of establishing an Asia-Pacific financial services hub.

Further details are expected to be announced in May.

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