A bill overhauling securities law has been introduced to Parliament.
The 560-page Financial Markets Conduct Bill replaces a variety of legislation, including the Securities Act, the Securities Markets Act, the Unit Trusts Act, the Superannuation Schemes Act and the non-tax parts of the KiwiSaver Act.
Commerce Minister Simon Power says it's aimed at improving financial market conduct and restoring investor confidence in the financial markets.
The bill's key proposals include requiring issuers to prepare a single product disclosure statement tailored to retail investors; and introducing civil penalties of up to $1 million for individuals, and $5 million for companies, if they make misleading statements in disclosure statements and advertisements.
It also significantly extends the scope of activities regulated by the Financial Markets Authority to include fund managers, independent trustees of superannuation schemes, derivatives dealers and peer-to-peer lenders.
