Financial markets in minister's sights
Draft policy decisions about new regulations to New Zealand's financial markets and "significant freeing up of capital raising" have been announced in Parliament this morning by Commerce Minister Craig Foss.
Changes in the Financial Markets Conduct Bill include allowing new forms of capital raising such as crowd funding platforms and person-to-person lending services.
Informed by recommendations of the industry-led Capital Markets Development Taskforce, the bill would require new licensing criteria for fund managers, discretionary investment management services and issuers of derivatives.
It also calls for single-product disclosure statements giving clear information to retail investors with a public register "that contains richer detail" so investors can easily compare products.
Changes intend to give investors better access to information that would help them make decisions about placing their money and ensuring investments are well governed.
"Investors need to be able to make investment choices according to performance and risk differences of schemes," the minister's Financial Markets Conduct Regulations Paper stated.
Foss said the regulations would bring significant reform to the financial markets.
"The FMC Bill is a key pillar in the capital markets work stream of the Government's Business Growth Agenda ... aimed at increasing investment in our capital markets so our firms can grow," he said.
"It is aimed at creating confident and informed investors and fair, efficient and transparent financial markets."
If approved, the changes would come into force in April 2014, Foss said.