The Ministry of Economic Development recently released an exposure draft of the Financial Markets Conduct Bill (the FMCB), the centrepiece of the Government’s business law reform programme. The FMCB will replace the Securities Act 1978, the Securities Markets Act 1988 and other related legislation, and create a comprehensive new regulatory regime for securities and other financial products. The FMCB is the culmination of an in-depth review of New Zealand’s existing securities law and aims, among other things, to increase investors’ confidence in the financial markets and facilitate fair, efficient and transparent financial markets. The newly-created Financial Markets Authority will be responsible for many of the regulatory functions under the FMCB.
Like the Securities Act, the FMCB leaves much of the detail of disclosure requirements to regulations, which will be developed in due course with extensive consultation. Buddle Findlay will provide a more detailed review of the FMCB soon, and publish further commentary as the FMCB makes its way through Parliament.