NEW WEBSITE ON CHANGES TO SECURITIES LAW


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2 February 2007

News release

New Website on Changes to Securities Law

The Securities Commission has set up a website - www.newsecuritieslaw.govt.nz - to help people understand changes to securities law which take effect around the middle of 2007.

"Securities market participants and all people who give investment advice to the public will need to comply with the new law," says General Counsel Liam Mason.

The changes are to the law relating to:

disclosure that investment advisers must make to their clients about themselves, their fees and commissions, and the types of investment they give advice on;
insider trading; and
disclosure of changes to holdings by large shareholders.

There is also new law about market manipulation - that is, behaviour or practices likely to give a false or misleading impression about the supply, demand, price or value of securities traded on a registered exchange.

"The Commission expects the law to come into force around the middle of this year after regulations are passed," Liam Mason says. "The regulations will contain some exemptions and futher detail of the law."

The Commission is preparing a Guide to New Securities Law which will be published when the regulations are finalised. This will be published on the website.

In the meantime the general scope of the new law is explained on the website and people can register to receive updates as they become available. They can also register to receive the Guide to New Securities Law when it is published.

The law changes arise from the Securities Legislation Bill passed in October 2006. The Bill amends various Acts including the Securities Markets Act 1988 and Securities Act 1978.

Changes to the Securities Act, extending the Commission's enforcement powers, have already come into force. Regulations will be passed to bring the rest of the changes into effect.

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Contact: Poly Banerjee 04 471 7666

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