Published 8 April 2011
Commerce Minister Simon Power said the Financial Markets Authority would be operating on 1 May (which is a Sunday), after the bill to establish it was passed by a unanimous vote in Parliament yesterday.
The new single market conduct regulator has been established under the Financial Markets (Regulators & KiwiSaver) Bill. It will take over the functions of the Securities Commission & Government Actuary, which are being disestablished, and consolidates other regulatory functions fragmented across the Ministry of Economic Development. It also gives the authority new powers, functions & duties.
The authority will have:
the power to exercise an investor’s right to take civil action against a financial market participant when it’s considered to be in the public interest to do so the bill ensures individuals can opt out of proceedings if they choosethe ability to use regulations to prevent products from being structured to avoid being supervised by the authorityenhanced warning powers to deal with low-ball unsolicited offers; anyone with a history of making unsolicited offers will be made to display a prominent warning to that effect when they send documents to investors; there is also a regulation-making power that will enable greater regulation of unsolicited offers, such as minimum offer periods, disclosure of market price and disclosure of other relevant informationa new oversight regime for registered exchanges, including the ability to undertake real-time surveillance of market activity.
Mr Power announced the makeup of the authority’s board this week.
18 March 2011: Comprehensive securities law rewrite coming
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Attribution: Ministerial release, story written by Bob Dey for the Bob Dey Property Report.