New regulations for financial markets approved
Commerce and Consumer Affairs Minister Paul Goldsmith today announced the approval of the phase two regulations of the Financial Markets Conduct Act. The regulations come into effect on 1 December 2014.
“The approval of these regulations represents the last major step in the once-in-a-generation reform of our financial markets,” says Mr Goldsmith.
“The reforms are an important part of the Government’s Business Growth Agenda to build confidence in our financial markets and allow firms to raise capital efficiently so they can grow their business and the economy.”
The phase two regulations cover the governance of financial products, licensing requirements for financial service providers and conduct obligations for discretionary investment management services.
“One of the key changes in these regulations is the introduction of a new disclosure regime that will mean shorter, clearer documents that are much more tailored to investors’ needs,” Mr Goldsmith says.
“In addition, a new online register for offers of financial products will ensure that information on financial products and managed investment schemes is easily accessible and comparable. This will also be up and running from 1 December.
“I want to thank the stakeholders who provided feedback on the Act and regulations. Their input throughout the consultation process has been invaluable towards shaping this new financial markets regime. I expect to continue this consultative approach in monitoring the implementation of this regime,” says Mr Goldsmith.