With key parts of the review already enacted and moving towards implementation, the Government's review of financial products and providers continues into 2009, with a review of the Securities Act 1978 and Regulations still on the horizon.
Review of the Securities Act and Regulations
The Ministry of Economic Development is currently scoping a project around this review which will be a significant undertaking. The project will include further consideration and seek decisions on the policy issues identified, which include:
- The definition of a security.
- The appropriate form of disclosure documentation (including whether or not there is an ongoing need for both a Prospectus and Investment Statement).
- The role of the Securities Commission.
Reform of the Securities Act is not in the new Government's immediate plans and, with other more pressing issues to attend to, we consider it unlikely that any amending legislation will be put before Parliament, at least in the first half of 2009. We will monitor the situation and advise further of any policy updates as they become available.
Any reform of the Securities Act and Regulations will obviously have a significant impact on the way issuers currently offer securities to the public.
In the meantime, the Financial Advisers and Financial Service Providers (Registration and Dispute Resolution) Acts are passed, a draft Anti-Money Laundering Bill has been released, and all move towards full implementation in 2010.
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