Securities and capital markets

NZX amends its Listing Rules to bring them in line with the new annual report provisions in the Companies Act
Following the Government's lead to reduce compliance costs associated with providing companies' annual reports to shareholders, NZX proposes to amend the NZSX, NZDX and NZAX Listing Rules to allow annual reports and half-yearly reports to be sent out in line with the new section 209 Companies Act provisions.

NZX issues two new guidance notes
NZX has released guidance notes on Listing Rule 5.2.3 relating to when the NZX will be satisfied that the issuer of securities has a sufficient spread of security holders and on the legal requirements for fund raisings effected by way of a Share Purchase Plan.

Australia introduces Bill for trans-Tasman mutual recognition of securities
Progress continues to be made in bringing into effect the Australian and New Zealand governments' agreement to introduce a mutual recognition of securities regime. Australia's Corporations (NZ Closer Economic Relations) and Other Legislation Amendment Bill 2007 was introduced at the end of March and is expected to be passed during the winter parliamentary sessions. The necessary approvals to finalise the equivalent New Zealand regulations will be sought once the Australian legislation has been passed.

MED releases summaries of submissions received in its Review of Financial Products and Providers
The Ministry of Economic Development (MED) has finished reviewing submissions it received from over 135 organisations in response to the nine discussion documents released as part of the Review of Financial Products and Providers (RFPP). The review includes proposed changes to securities offerings regulated by the Securities Act.

Update on Takeovers Panel's reform proposals for schemes of arrangement
In late 2006 the Government failed to gain the necessary political support to include the Takeovers Panel's proposed reforms relating to code companies effecting a scheme of arrangement under the Companies Act as part of the Business Law Reform Bill. The Government has now referred the matter back to the Takeovers Panel for further review and consultation with the business community. The Takeovers Panel has also recently published its revised policy on the use of its exemption powers for schemes of arrangement.

Discussion paper released on derivative futures contracts
In response to requests from market participants, the Securities Commission has put forward a proposal to use its powers under the Securities Markets Act 1988 to declare certain derivative contracts known as contracts for difference in respect of shares or other securities to be futures contracts.

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.