Debt capital raising simplified

Commerce Minister Craig Foss today announced further steps to simplify and encourage participation in New Zealand’s capital markets.

“Cabinet this week signed off on a number of policy decisions to come into force under the Financial Market Conduct Act on December 1,” Mr Foss says.

“The decisions include new disclosure requirements to improve investor literacy, confidence and participation in financial markets.

“Disclosure will be standardised, simplified and tailored for retail investors – enabling easier comparison of managed funds across providers.  This means material unlikely to be read and understood by investors will be removed and made available online.”

Mr Foss says Cabinet also decided to extend the same-class debt exemption to offers of debt securities with different terms.

“I am confident these changes will further reduce compliance costs for debt issuers and expand the availability of debt investments on the retail market.”

To help existing market participants comply with the new law, operators of unregistered markets will have until 1 December 2015 to obtain a financial market product license.

“The Financial Markets Conduct Act is a key pillar in the Government’s Business Growth Agenda. It will introduce a new era of financial market regulation that ensures investors are better informed and offered better protections,” Mr Foss says.

For more information: www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act