New Zealand Exchange Limited (NZX) supports the Government review released today, aiming to clarify and simplify the regulatory environment for financial providers and products.
NZX strongly supports this aim, particularly the following areas of the review that will directly and positively impact the capital markets if pursued:
- A potential exemption from prospectus requirements in the Securities Act 1978 for Listed Issuers when they undertake secondary capital raisings. Such an exemption would recognise Listed Issuer compliance with their continuous disclosure obligations and reward that with a lower cost of capital.
- Collective investment schemes are currently covered by complex and inconsistent legislation. The review highlights the Government's aim to clarify and streamline the overall regulatory environment. If this is successful it will be beneficial to both Listed Issuers and investors.
- A requirement for both credit rating and increased disclosure requirements for finance companies is also strongly supported. NZX is sure quality finance companies will also welcome such increased disclosure.
