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What does the Securities Commission Do?

The Securities Commission was established under the Securities Act 1978 as an independent crown entity. It is the main regulator of investments in New Zealand, and is responsible for the enforcement, monitoring and market oversight of securities markets. The Securities Commission works to create and maintain investor confidence in New Zealand’s securities markets. This ensures that the markets are attractive to investors both within and outside of New Zealand. The Securities Commission publishes regular bulletins and financial advice for consumers, ensuring that it continues to promote public understanding of investments.

Who makes up the Securities Commission?

There are at all times between 5 and 10 members of the Security Commission, who are recommended by the Minister of Commerce and appointed by the Governor-General for their expertise and knowledge of the industry, and it employs around 50 staff.

Roles, Functions and Powers of the Securities Commission.

The Securities Commission has a wide range of roles and functions, including regularly reviewing the law and practices relating to bodies corporate, securities and unincorporated issuers of securities in New Zealand, advising and recommending changes to the Minister of Commerce and providing comment on these. To perform these role and functions, the Securities Commission has a wide range of powers.

Recent Developments:

The role of the Securities Commission is expanding with the recent introduction of new financial services legislation. The Financial Advisers Act 2008 and the related Financial Service Providers (Registration and Dispute Resolution) Act 2008 were enacted to promote the sound and efficient delivery of financial advice, and to encourage public confidence in the professionalism and integrity of financial advisers. Anyone providing or offering to provide financial advice will have to be registered with the Companies Office and authorised by the Securities Commission. The Financial Service Providers Register is due to go live from May 2010 and will be maintained by the New Zealand Companies Office.