Published 22 December 2007
The Securities Commission put a proposal out on 21 December for public consultation on changing the "Important information" section of investment statements to take account of new disclosure requirements which come into force at the end of February.
Submissions close on Tuesday 22 January.
General counsel Liam Mason said the section needed to be changed to take account of new disclosure requirements for investment advisors when the Securities Markets Amendment Act 2008 comes into force on Friday 29 February.
That act will repeal the Investment Adviser (Disclosure) Act 1996 and will replace this with new disclosure rules for investment advisors, to be located in parts 4 & 5 of the Securities Markets Act.
Mr Mason said: “The new law will require investment advisors to give certain information to all prospective clients before any investment advice is given. This differs from the current law, which only requires most information to be given on request. The new law will also require investment advisors to provide more information about relevant fees, commissions & other incentives.
“The new investment advisor law will have an effect on investment statements because the ‘Important information’ section of an investment statement includes information for investors about the disclosure they can expect from an investment advisor.”
Attribution: Commission release, story written by Bob Dey for this website.