Today, the Commerce Minister Hon Simon Power introduced the Financial Markets Conduct Bill 2011 (FMC Bill), which represents the most comprehensive reform of New Zealand's securities and financial markets law in a generation. The Bill, a 560 page behemoth, not only consolidates securities and financial markets legislation currently contained in a number of different Acts - it also re-writes much of that legislation.
The FMC Bill has grown in length from the 400 page exposure draft released in August (for details see our earlier update here) and includes a number of recommendations made by the 72 submitters on the exposure draft as well as the transitional provisions (in Part 9) and consequential amendments (in Schedule 4) which were not part of the exposure draft.
To view the FMC Bill click here.
The Ministry of Economic Development (MED) has also released copies of the 72 submissions it received on the exposure draft of the FMC Bill on its website here.
To assist market participants with the review of the FMC Bill, MED has indicated that it will be releasing a table of the combined submissions (which includes some MED commentary) and a comparison of the FMC Bill and the exposure draft of the Bill. These will be available here soon.
You can still have your say on the FMC Bill
There will still be opportunities to influence the final provisions of the FMC Bill and accompanying regulations. Much of the technical detail, such as the content requirements for disclosure documents, for the new regime will be contained in regulations. MED has announced that it intends to allow for extensive consultation as the regulations are developed over the coming year.
There will also be an opportunity to make submissions on the FMC Bill during the select committee process. If the current Government's timeline is kept, this is likely to be in the first quarter of 2012 with a view to the Bill being passed by the end of 2012 and the FMC Bill being brought into force by 2013.
In addition, MED has said that it will continue to consult informally on the FMC Bill over the coming months.