1997 Annual Report

Our fundamental purpose is to facilitate capital investment in New Zealand by:

• Promoting the efficiency of the New Zealand securities markets,
• Enhancing the integrity of these markets,
• Promoting the cost-effective regulation of these markets,
• Strengthening public and institutional confidence in these markets, both in New Zealand and overseas.

To achieve this purpose we direct our work to promoting:

• Good standards of disclosure,
• Reliable and ethical procedures for effecting transactions,
• Sound principles for market regulation,
• Cost-effective rules of law,
• Flexibility in development of best regulatory practice,
• Closer relations with overseas regulators,
• Public understanding of the law and practices of securities.

Parliament:

• Enacted law to provide for the new investment statement and to apply securities law more generally to life insurance, superannuation and unit trusts,
• Enacted law to provide new disclosure obligations for investment advisers.

Government:

• Decided to hold a national referendum on retirement savings,
• Commenced a review of the role and functions of the Commission.

The Commission:

• Recommended extensive changes to the Securities Regulations,
• Commenced a review of all existing exemption notices,
• Developed new exemptions for equity warrants, group investment index funds, retirement homes and property investment schemes,
• Promoted new and simplified procedures for disclosure of substantial holdings in listed securities,
• Completed an increased number of inquiries,
• Expanded international information sharing arrangements by concluding understandings with agencies in the United States of America, Hong Kong and Chinese Taipei.