17 Apr 2009

Changes to securities regulation proposed

1:21 pm on 17 April 2009

The Government is seeking feedback on proposals to make it easier for firms to raise money, and improve the level of disclosure to investors.

Commerce Minister Simon Power has put out a discussion document on changes to securities regulation, some of which is now 25 years old.

The global financial crisis has restricted the amount of credit available to firms, and Mr Power says the proposed changes will reduce the cost and make it easier for companies looking to raise capital.

Mr Power says the changes will also help investors, by forcing directors and promoters to provide more information about their interests in any attempt to raise capital.

A partner at law firm Chapman Tripp, Roger Wallis, says most of the proposals are sensible and should be adopted quickly.

But he says some of the proposals, such as requiring firms to provide forecast figures when raising capital for the first time, could increase their costs.