Although the Commerce Select Committee has improved the Securities Disclosure and Financial Advisers Amendment Bill, the changes are timid and the Bill is still an opportunity wasted, says Chapman Tripp Partner Roger Wallis.
“The improvements the committee has recommended in its report back to the House today are sensible but are not sufficient to make the Bill relevant to the small and medium sized enterprises which dominate the New Zealand corporate landscape.
“The committee has been too cautious rejecting submissions that would have made the listed issuer simplified disclosure prospectus more workable.
“We can only hope that the needs of SMEs will be picked up in the current review of the Securities Act, and that the forthcoming regulations on the simplified disclosure prospectus content are not timorous,” Mr Wallis said.
“We do welcome clarification that disclosure statements made under the Retirement Villages Act do not constitute financial advice for the purposes of the Financial Advisers Act, and some changes made at the margin to the workability of the exemption for subsequent offers of private equity.”