18 May 2006
News release
Securities Commission Inquiry to Include Cunliffe Comments
The Commission has amended its Terms of Reference of its inquiry into circumstances surrounding the release of the
Government's Telecommunications Stocktake paper.
The Commission's purpose is to strengthen investor confidence and foster capital investment in New Zealand.
The amendment follows the referral made by the NZX to the Commission yesterday relating to comments reported to have
been made by the Communications Minister David Cunliffe on Telecom's dividend policy.
The terms of reference have been broadened to include that matter and whether it affected the transparent and orderly
functioning of securities markets.
In its inquiry the Commission will consider whether:
• any person misused any market sensitive information relating to securities contained in the Telecommunications
Stocktake Paper before that information was publicly available;
• any Government and/or State Sector policies and procedures for handling non-public market sensitive information
relating to securities were appropriate and properly applied; and
• whether any person could or should have taken, or refrained from taking, any actions in respect of these matters
to maintain the transparent and orderly functioning of the securities markets in New Zealand or elsewhere.
The inquiry will be conducted under sections 10(b), 10(c) and 10(caa) of the Securities Act 1978.
The Commission will make no further comment at this time.