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16 December 2009

News release

Hon Simon Power, Minister of Commerce

Govt welcomes final report on capital markets

The Government will consider the recommendations of the Capital Market Development Taskforce's final report as a matter of priority, Commerce Minister Simon Power said today.

The report, which details a blueprint for the development of New Zealand's capital markets, was released today.

The taskforce assessed how these markets are working and what improvements can be made. The report focuses on delivering better outcomes for investors, in both the quality and range of products available, and developing and growing access to capital for businesses.

The recommendations include:

Expanding the range of products available to investors and improving the quality of advice they receive.
Increasing access to capital for businesses.
Improvements to securities law.
Changes to the structure and operations of finance sector regulatory agencies.
Addressing tax incentives that cause distortions in the local capital market.

Mr Power said the Government will look closely at some of the recommendations as part of the current review of the Securities Act. He intends to release discussion documents on the review in the new year.

"The Government will consider the report as a matter of priority over the coming weeks, and we expect to be able to detail early in the new year how it will be progressed.

"These recommendations are a key part of the Government's wider work programme for the financial sector, and to demonstrate just how important we regard it, the Prime Minister will lead the response by announcing it early in 2010.

"The taskforce has identified areas where our markets simply aren't performing and areas where there are opportunities for improvement.

"Our capital markets cannot be allowed to under-perform. They are a key means of wealth creation for New Zealanders and a vital source of finance for businesses.

"It's important that we develop our capital markets to allow for business growth while ensuring that investors receive proper levels of protection.

"The proposed initiatives will make real improvements to the robustness and productivity of our capital markets and will make a strong contribution to economic growth.

"I commend the taskforce for their excellent work over the past 18 months."

Further information can be found at www.med.govt.nz/cmdtaskforce.

All Simon Powers's media statements and speeches are at www.beehive.govt.nz/minister/simon+power

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