Securities and capital markets

Update on regulations for new securities law
In late December 2006 Cabinet approved the policy for the regulations which are required for the implementation of the changes to the new securities law. The regulations are currently being drafted and it is expected that they will come into effect by mid-2007.

New Securities law website established
As reported in the Spring 2006 issue of Commercial Quarterly a major new suite of securities legislation was passed in October 2006. The full effect of these changes will not be felt by market participants until later this year as we are still waiting on regulations to come through before some of the key provisions take effect. In the meantime, the Securities Commission has set up a website especially to assist the market in understanding these changes.

Changes to increase the benefits of share purchase plans
Louise Hill, a senior sssociate in Bell Gully's Corporate team, considers a number of issues associated with share purchase plans including the effect of the proposed Securities (Mutual Recognition of Securities Offerings – Australia) Regulations 2006 (and their Australian counterpart) on these plans and the ability of trustees of employee share schemes to participate in share purchase plans.

Securities Commission too late to seek penalties in Tranz Rail insider trading case
The Court of Appeal has confirmed that the Securities Commission will not be able to seek penalties in the case against former Tranz Rail Director, David Richwhite, and Midavia Rail Investments as the penalties claims are time-barred under the current wording of the legislation.

New amendments to the NZAX Listing Rules
After an extensive consultation and review of the NZAX market, NZX has finalised its amendments to the NZAX Listing Rules. It is expected that the new rules will take effect from mid-March 2007.

Bell Gully authors New Zealand M&A chapter in international publication
Bell Gully partners Andrew Brown and Andrew Abernethy have authored the New Zealand section of the International Comparative Legal Guide to Mergers & Acquisitions 2007, published by the Global Legal Group.

Enquiries and information

For more information on any of the cases, articles and features in Commercial Quarterly, please email Diane Graham or call her on 64 9 916 8849.