Dalziel Lianne: Third Readings 
Dalziel Lianne: Third Readings 
[Volume:634;Page:5722] 
Hon LIANNE DALZIEL (Minister of Commerce) 
: 
 I move  
That the Securities Amendment Bill the Securities Markets Amendment Bill the Takeovers Amendment Bill and the Fair Trading Amendment Bill be now read a third time 
. These bills are designed to encourage investment in New Zealand’s financial markets. They address three principal deficiencies in our securities markets laws. 
First parts of our law are not as effective as they should be. Our insider trading rules have been overly complex. The Investment Advisers (Disclosure) Act fails to deliver meaningful information to consumers and disclosures made by substantial securities holders are confusing. Second other aspects of our law are out of step with international norms. This Government recognises that given the small size of our capital markets in global terms there is a real investment cost if our regulation does not look like that expected around the world. Third the regulators of our financial markets must have the tools to enforce the law effectively. 
This legislation tackles each of these issues. Its objective is to improve the confidence of investors both here and overseas in the integrity of New Zealand’s capital markets. The bills do this by strengthening the regulatory framework in our securities securities trading and takeovers law. 
The main provisions of the bills include a new insider trading regime focused on the damage such conduct poses to the efficiency of and confidence of investors in financial markets; comprehensive prohibitions for the first time in our law and consistent with international practice against market manipulation and conduct creating a false impression of securities trading activity price movement or market information; simplification of the substantial security holder regime by requiring disclosure of relevant interests by class and for listed voting securities only; improvements to investment adviser and broker disclosure law by requiring important additional information to be disclosed to clients before giving advice and by making all disclosures mandatory—also the Securities Commission is given a public enforcement role in this area—and finally a complete overhaul of the size and range of penalties and remedies available under securities and takeovers law aimed at deterring illegal behaviour and encouraging compliance. 
I tabled further changes to the Securities Legislation Bill by way of a Supplementary Order Paper in the Committee of the whole House stage in response to issues raised by business after the bill was reported back from the Commerce Committee. Those changes picked up a number of minor amendments necessary to better target some provisions ensure the efficacy of others and correct minor errors in the bill. For example amendments were made to ensure that capital market advisers are not caught by some of the insider trading or continuous disclosure provisions of the bill where they are legitimately advising their clients on their own activities. 
I would like again to thank the Commerce Committee for its work on the legislation and those who made submissions on it. I also thank all the officials who worked extremely hard to get the legislation to this point and it is a great credit to them that we now see the passage of this legislation. I would especially like to thank Kirstie Hewlett; I know it is unusual to name an official in the House but Kirstie has gone beyond what would be expected of any official in her role as manager of the financial sector team at the Ministry of Economic Development. She coordinated the work programme that led to this legislation. She has incredibly high standing out there amongst the stakeholders and I wish her well in her forthcoming work which will be even more difficult than the work she has done for us. There is still a large amount of work being done by officials in that team and they have done an excellent job on this legislation under considerable pressure. 
This legislation is an important part of the Government’s wider securities law reform programme. It creates the regulatory conditions for boosting investor confidence in participation enhancing the integrity of our financial markets and ultimately assisting economic development and economic transformation by increasing investment in New Zealand. I recommend the bills to the House.