Feedback sought on governance of financial products

Craig Foss
17 December, 2013

Commerce Minister Craig Foss has released the second set of draft regulations to bring the Financial Markets Conduct (FMC) Act 2013 into effect.

“The FMC Act governs how financial products are promoted and sold and contributes to the Government’s Business Growth Agenda to build New Zealand’s capital markets and drive business growth,” says Mr Foss.

The draft regulations released today relate to phase two of the implementation and cover the governance of financial products, dealing in financial products on licenced markets such as NZX, and the conduct obligations for discretionary investment management services.

“The FMC Act supports the creation of well-functioning financial markets and gives New Zealanders an opportunity to save and invest with confidence. The Act is the result of a comprehensive review of our securities law to address lessons learnt from the global financial crisis,” says Mr Foss.

The application of the FMC Act will ensure investors have the information they need to make sound decisions and that there are appropriate controls in place to facilitate transparent capital market activity,” says Mr Foss.

Submissions on these draft regulations are due by 14 March 2014.

For further information visit www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/consultation-regulations-stage-2