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2009 Annual Report

FUNCTIONS & POWERS

The Commission is established under the Securities Act 1978, which determines its functions as:

keeping under review the law relating to bodies corporate, securities and unincorporated issuers of securities and recommending changes to the Minister of Commerce
keeping under review and commenting on practices relating to securities and financial advisers
cooperating with overseas securities commissions
keeping under review and commenting on securities markets activities
advising the Minister of Commerce on conduct rules proposed by securities exchanges
promoting public understanding of the law and practice relating to securities and financial advisers.

The Commission's powers to perform these functions include:

receiving evidence on securities law and practice, with power to summons people and documents and carry out inspections
banning misleading and illegal offer documents and advertisements
enforcing securities law and the law relating to insider trading and market manipulation, and disclosure by substantial security holders and investment advisers
enforcing continuous disclosure law and making orders requiring disclosure by issuers
requiring an exchange to provide the Commission with information and assistance
accepting enforceable undertakings
publishing reports and comments
making orders requiring disclosure by unregistered exchanges
exempting persons from compliance with provisions of the Securities Act or Regulations under the Act
authorising certain market participants
recommending law reform
hearing appeals against certain decisions of the Registrar of Companies.

The Commission is an independent Crown entity in terms of the Crown Entities Act 2004.

Other legislation the Commission works with includes the Securities Markets Act 1988, the Financial Reporting Act 1993, the Securities Regulations 1983, the Securities Act (Contributory Mortgage) Regulations 1988, and the Securities (Fees) Regulations 1998. The Commission may also consider certain matters arising under the Corporations (Investigation and Management) Act 1989 (in particular, directions to "at risk" corporations and recommendations about statutory management).

The Commission will be responsible for administering the Financial Advisers Act when this comes into force. It will authorise advisers and monitor their conduct and competency requirements. The Commission has been working on implementing the new regime with the aim of having it in place by the end of 2010.

AUTHORITY

This annual report was approved by the Securities Commission on 16 July 2009.


Jane Diplock AO Chairman	Keitha Dunstan Chairman, Audit & Risk Review Committee

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