Update on financial markets overhaul

February 04 2016

The Financial Markets Conduct Act 2013 is in the process of completely overhauling New Zealand’s financial markets laws. We are currently approaching the end of the transition period in which our existing capital markets and financial services legislation, most notably the Securities Act 1978, is being phased out and replaced by the new Act. The Act is supported by regulations which set out the more detailed aspects of the new laws.

In November 2015, the Financial Markets Conduct Amendment Regulations 2015 were published, which supplement and amend the existing regulations. In many cases, the amendment regulations aim to deal with practical issues which were identified as the previous regulations were implemented.

Two key changes include new provisions relating to:

  1. Simplified disclosure requirements for offers of certain debt and equity securities, and
  2. New prescribed disclosure requirements for offers of financial products which will, or may, convert into other financial products.

If you are involved in financial markets (including issuing shares in a small business), we recommend that you seek advice on how the new laws may affect you.

The government continues to receive submissions and is expected to publish a further update later in 2016.

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