Annual Report 30 June 1999

Our purpose is to foster capital investment in New Zealand by:

• Promoting the efficiency of 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.

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

During the year the Commission:

• Published a report on a major inquiry into trading in the shares of McCollam Printers Limited,
• Acted promptly to stop the promotion of dubious investment schemes, particularly those from overseas,
• Issued warnings about a marked increase in telephone cold calling of New Zealand investors by overseas brokers,
• Inquired into and declined a request for action under section 17 of the Securities Amendment Act 1988 relating to possible insider trading by former directors of Brierley Investments Limited,
• Completed an extensive review of investment statements in various industry sectors,
• Released a discussion paper on an extended exemption policy for overseas collective investment schemes,
• Began publishing exemption notes giving reasons for granting exemptions,
• Encouraged the promulgation of a reporting standard on summary financial statements,
• Commenced a project on the electronic offering of investments,
• Assisted the Ministry of Commerce
  • with a policy on capital raising by small and medium sized enterprises
  • with preparations for a review of the Securities Regulations 1983,
• Secured appointment to the IOSCO Implementation Committee on Objectives and Principles of Securities Regulation,
• Hosted visits from several overseas regulatory authorities,
• Received increased funding through new fees regulations for exemptions and authorisations and an increased Government grant for future years.

The Securities Commission consists of not less than five nor more than 10 Members appointed by the Governor-General on the recommendation of the Minister for Enterprise and Commerce. Members hold office for a term not exceeding five years but may be re-appointed. There are no statutory qualifications for membership, except that the Chairman must be a barrister or solicitor of not less than seven years' practice.

Commission Members are chosen having regard to their qualifications, experience and skill in the public market for securities. One Member, Mr D. J. Stock, retired during the year after 10 years' service.

There were 12 regular monthly meetings and 56 quorum meetings. There were an additional 59 resolutions in writing many of these arising from telephone conferences between Commission Members.

There are at present eight Commission Members. They are: