Parliament's Commerce Select Committee is backing legislation that would make company directors criminally liable for providing documents they know to be false.
The Financial Markets Conduct Bill is aimed at promoting greater transparency in financial markets, by targetting misleading or deceptive conduct around the sale of financial products.
Under the legislation, directors of companies will be criminally liable if they offer potential investors documents they know contain false information.
Commerce Minister Craig Foss says the bill is critical to restoring investor confidence in New Zealand's financial markets.
He says it improves the ability of businesses to raise capital, while ensuring the unscrupulous are held to account.
There is cross-party support for the bill, which is likely to become law early next year.
