Introduction of the Securities Legislation Bill, which has tough new rules for adviser disclosure, has been slowed down because of new concerns.
Thursday, June 8th 2006, 6:39AM
The Ministry of Economic Development yesterday said that the bill has not yet been tabled "as there has been some further work on the Supplementary Order Paper to address concerns raised by market participants on parts of the bill."
The concerns raised, it said in a statement, were:
Investment advisers may not always be able to meet their disclosure obligations if they have to make all the disclosure prior to giving advice
The requirement that investment advisers disclose whether they have been the subject of an adverse finding by a tribunal or disciplinary body could be too broad
Professional advisors such as lawyers, accountants and investment advisers may be inadvertently caught by insider trading laws when acting in their professional capacity.
MED officials are continuing to review submissions received on regulations dealing with investment advisers’ and brokers’ disclosure; substantial security holders’ disclosure, insider trading exemptions and market manipulation exemptions.
MED's statement says that it is likely policy proposals for the regulations will be sent to Cabinet in July, and draft regulations to Cabinet in September/October 2006.
