Government boosts Securities Commission

The Securities Commission’s investigations and enforcement abilities have been boosted by a Budget 2004 cash injection of $6 million over four years, says Commerce Minister Margaret Wilson.

“Effective enforcement of securities laws is key to maintaining investor confidence in the country’s securities markets," she said.

"Increased investor confidence should lead to greater investment in the New Zealand economy, and help to achieve the government's goal of growing an inclusive, innovative economy for the benefit of all."

Margaret Wilson said the increased funding would boost the commission's capacity to carry out surveillance of the market participants and securities exchanges.

"The funding also anticipates the commission's expanded role in policing re-vamped insider trading, market manipulation and investment advisor disclosure laws in the forthcoming Securities Trading Law Reform Bill scheduled to be introduced to the House later this year.

"This government is putting great emphasis on promoting confidence and participation in New Zealand's securities markets to ensure businesses can access the capital they need to grow. Strengthening the regulatory framework to encourage investment and enhance market performance will help achieve that goal.”

A strengthened insider trading regime and a comprehensive and effective regime against market manipulation will also bring New Zealand into line with international best practice, Margaret Wilson said.

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