• About
• Publications
• Exemptions
• Notices
• What's new?
• International
• Speeches
• Information for investors
• Contact us
• Site map
• Home

29 October 1992

News release

Response to Evening Post on Gaynor article regarding enforcement of securities laws

The Editor
Evening post
P.O. Box 3740
WELLINGTON

Dear Sir,

I refer to Brian Gaynor's article on page 27 of the Evening Post of 27 October 1992 about the enforcement of securities law.

The Securities Commission has enforcement type functions in respect of two matters, insider trading and disclosure of substantial share holdings, in each case in respect of listed companies. In addition the Commission has powers to suspend and cancel prospectuses and to prohibit advertisements for securities. We also have the power to review statutory authorisations and exemptions of the Commission in relation to a wide range of financial institutions active in New Zealand financial markets. However notwithstanding the statements of Mr Gaynor we have no role in relation to criminal law or criminal prosecution. Moreover we aim not to duplicate the work of the Market Surveillance Panel or indeed of the New Zealand Futures & Options Exchange.

Where the Commission has enforcement type powers we use them, to the extent of our resources, actively and energetically. We do not use them lightly but when we do we do so to the reasonable limits of the law. The threats of legal proceedings which we routinely receive is good evidence of this. It may come as a surprise to Mr Gaynor that some 70% of our budget is expended on administration of the law and some 25% on law reform.

I agree fully with Mr Gaynor that the Government needs to complete the review of its policies on securities market regulation. I also agree that this should be a matter for public comment. However it is also important that public discussion should be well-informed and should cover not only the regulation of listed companies but the work of all institutions which receive money from the public.

Yours faithfully,

J. Farrell
Chief Executive