2003 Annual Report

The Commission endeavoured, consistent with the interests of investors, to complete its enforcement work in a way that made best use of resources committed by both market participants and the Commission. It gave priority to inquiries raising significant issues for investors and the market. The Commission endeavoured to complete its enforcement work promptly. Where appropriate, results of its inquiries were communicated without delay to market participants and the public so that they derived maximum benefit.

The Commission met agreed timetables for activity on behalf of other commissions.

The Commission took part in the work of IOSCO's President's and Executive Committees, the Asia Pacific Regional Committee and the Committee on the Implementation of Objectives and Principles of Securities Regulation.

The Commission met and conferred with overseas regulators and institutional investors.

The Commission worked with the Reserve Bank of New Zealand and other agencies to prepare for the Financial Sector Assessment Programme (FSAP) evaluation of New Zealand expected to take place in October/November 2003.

To publish The Bulletin, annual report and other documents.
To maintain and develop the website.
To publish exemption summaries on the website.
To respond to public inquiries.
To maintain contact with the news media and otherwise provide information to the public.
To deliver speeches, articles and presentations.

The Commission published 4 issues of The Bulletin (budget for the year 4 issues) and issued 29 news releases (budget for the year "as required"). It published 81 summaries of exemptions granted.
The Chairman and staff gave 22 formal speeches and attended 10 functions specifically arranged for discussion with market participants.
The Commission received 1,566 miscellaneous inquiries from members of the public (budget for the year 2000).

The Commission based its work on observed market practice and on sensible interpretations of securities law. It aimed to simplify the expression and content of the law. Material in The Bulletin, speeches, and articles was current, relevant and useful. The website was up to date and easy for visitors to use.

The annual report was published on 26 July 2002 (budget for the year - report to be published within one month of the end of the financial year). The Bulletin was published in July, October, January and April (budget July, October, January and April).
Other public understanding projects were completed on time. All but 3 of the 1566 public inquiries were actioned within 5 working days of receipt (budget for the year 100%).

The Commission allocated 9.2% of its expenditure to this output (budget for the year 10.0%).

To provide services related to the Panel's outputs including:

•		Review of Takeovers Code,
•		Approvals,
•		Exemptions,
•		Enforcement,
•		Market Practice,
•		Public Understanding,
•		International Liaison,
•		Administration.

Quality, and Timeliness for services were as provided for in the Memorandum of Understanding between the Panel and the Commission.

The Commission allocated 21.2% of its expenditure to this output and recovered this amount from the Panel (budget for the year 17.0%).

Commission Members are appointed by the Governor-General on the recommendation of the Minister of Commerce having regard to their qualifications, experience, skill and reputation for integrity in the public market for securities. New appointments are made only after extensive advertising in the newspapers and personal interview by representatives of the Minister and the Commission.

All aspects of work were kept under continuing review by regular reporting to Commission Members and by frequent meetings of the Commission. A total of 211 meetings were held during the 2003 financial year (11 regular monthly meetings and 200 division meetings including telephone conferences with decisions confirmed by resolutions in writing).

Where matters of significant policy arose at quorum meetings they were referred to a full meeting for further consideration by all Commission Members.

The Commission reported quarterly to the Minister of Commerce.

The Commission has an Audit Committee chaired by a chartered accountant. It met on 4 occasions during the year.

Work priorities were reviewed at each monthly meeting of the Commission and the complete work programme was reviewed quarterly.

All requests for new work were assessed promptly. When new work could not be undertaken because it was not within the Commission's terms of reference, because it was not within established priorities or because another agency might be able to provide more relevant or more effective service, applicants were notified promptly.

Priority was given to enforcement, in particular to contributory mortgages, the review of offer documents, the activities of investment advisers and insider trading.

Priority was given to work on exemptions and authorisations. The Commission aimed to provide a prompt, relevant and effective service so that the reasonable expectations of market participants were met and their activities were not delayed or inhibited.