Chapman Tripp has lodged two submissions on the Financial Markets (Regulators and KiwiSaver) Bill – one on the financial markets aspects and the other on the KiwiSaver changes.
We have also updated our Superannuation and KiwiSaver legislation compendium to reflect amendments since the March 2009 edition.
Recommendations in brief
We consider that the Bill should avoid pre-empting the Securities Law Review wherever possible and should confine itself to those changes which are necessary to allow the Financial Markets Authority (FMA) to be established in the first quarter of 2011.
Particular matters we consider would be more appropriately addressed within the longer timetable of the Securities Law Review, enabling more consideration, are:
- whether the FMA should have the power to bring civil actions on behalf of investors, and
- whether substantial reform is required to the process for registering securities offers.
We support the proposed changes in principle. However, we consider that the downstream effects on the detail of the KiwiSaver Act, and on the Securities Regulations which govern KiwiSaver schemes, have not been fully thought through.
The decision to change the trustee’s role from issuer to statutory supervisor is the right one, in our view, but requires that certain of the powers and duties which are currently held by trustees be transferred to managers.
Managers and trustees will also need compliance relief from certain Securities Act provisions, and the changes encompassed in the Bill will need to be better integrated into the Securities Act itself.
The full submissions are available here:Submission to Commerce Select Committee on Financial Markets (Regulators and KiwiSaver) Bill - financial market aspects
Submission to Commerce Select Committee on Financial Markets (Regulators and KiwiSaver) Bill - KiwiSaver schemes amendments
We are pleased to note that the 15 November report back of the Taxation (GST and Remedial Matters) Bill has picked up on the leasehold estates issue which we mention at page 9 of the KiwiSaver submission.
Hard copies of the Superannuation and KiwiSaver legislation compendium can be obtained by contacting Emma Harding