The Regulator Report lists recent changes, decisions and developments at the main New Zealand and Australian corporate, commercial and competition regulatory bodies and updates progress of legislation in New Zealand. This edition of the Regulator Report covers the period from 8 October to 28 October 2009.

The Reserve Bank of New Zealand

Some temporary crisis liquidity facilities to be removed
The Reserve Bank has announced that it will be removing and consolidating some of the temporary emergency liquidity facilities put in place during the financial crisis in 2008. The changes will take effect from the beginning of November, with the final TAF and Reserve Bank bill tenders scheduled for the week beginning of 26 October.
Click here for details of the changes
For details on the Bank's liquidity facilities refer to http://www.rbnz.govt.nz/finmarkets/domesticmarkets/3329772.html.

Reserve Bank releases 2008-09 Annual Report
New Zealand has escaped major damage in the worst global financial crisis in decades, but the experience has highlighted imbalances and vulnerabilities, the Reserve Bank says in its 2008-2009 Annual Report.
Click here to read the full media release
Click here to access the 2009 Annual Report text
Click here to access the 2009 Annual Report financial statements
Click here to access the Supplement: The Global Economic Crisis Unfolds

RESERVE BANK OF NEW ZEALAND ACT EXEMPTION NOTICES

The following Reserve Bank of New Zealand Act Exemption Notices have been published for this period:

Deposit Takers (In Receivership or Liquidation) Exemption Notice 2009
Section 157I of the Reserve Bank of New Zealand Act 1989 requires entities that are deposit takers for the purposes of Part 5D of the Act to have a credit rating by an approved rating agency on and after 1 March 2010, and section 157M of the Act requires these entities to have and comply with a risk management programme on and after 1 September 2009. This notice exempts entities from these requirements if:

• they are in receivership and no longer offering deposits, except deposits that could only be accepted by persons who come within the definition of eligible person in the Securities Act 1978 (which relates to wealthy persons and persons experienced in investing money or experienced in the industry or business to which the security relates) or by persons referred to in section 3(2)(a) of the Securities Act 1978 (to whom an offer of securities would not constitute an offer of securities to the public for the purposes of that Act); or
• they are in liquidation.

This notice came into force on 9 October 2009.

Deposit Takers (Payment Facility Providers) Exemption Notice 2009
This notice came into force on 16 October 2009 and expires on 1 September 2014. It exempts payment facility providers from the requirements to have a credit rating and a risk management programme. Currently, the notice only applies to Interpayment Services Limited, which is a deposit taker to which Part 5D of the Act applies only by reason of issuing certain debt securities known as Travelex Cash Passports. The notice is subject to conditions. It is intended that the generic conditions will apply to any payment facility provider to which the notice applies. In addition, clause 7 contains conditions that are individually tailored to Interpayment Services Limited.

Ministry of Economic Development (MED)

Amendments to financial advisers regime
Commerce Minister Simon Power has announced that the Government is proposing technical amendments to the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 in response to industry concerns."The amendments intend to simplify the implementation of the Acts and reduce costs, while still encouraging public confidence in the industry and promoting sound and efficient delivery of financial advice," Mr Power says. The proposed changes include:

• Requiring a Qualifying Financial Entity (QFE) to name the individual contractors whose advice it will take responsibility for, instead of automatically being responsible for advice from all its contractors.
• Allowing a QFE's employees and named contractors to provide financial adviser services on the QFE's category 1 products (complex products such as shares), without being individually licensed. This is currently permitted only for the QFE's employees.
• Permitting the employees and named contractors to provide financial adviser services for products for which the QFE is a promoter under the Securities Act. Currently, the Financial Advisers Act allows this only if the QFE is the issuer of the product.

The Minister also indicated that term life insurance, bonus bonds, and call building society shares will be changed from category 1 to category 2 products to ensure the public has easy access to simple, well understood financial products. The MED is consulting directly with industry participants on the proposed changes rather through a public consultation paper, but the public will have the opportunity to contribute to the proposed amendments at the select committee stage.
Click here for the full press release

Financial service providers and advisers fees regulations discussion document
MED has released a discussion document which sets out fee proposals to be charged by government agencies to recover the costs of implementing aspects of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act) and the Financial Advisers Act 2008 (FAA). It includes fees to be charged by:

• the Companies Office for financial service provider registration applications and renewals;
• the Ministry of Justice for carrying out criminal checks on each individual named in applications for registration;
• the Ministry of Consumer Affairs for administration costs associated with the dispute resolution regime; and
• the Securities Commission for Authorised Financial Adviser and Qualifying Financial Entity (QFE) applications, renewals and supervision.

The proposed initial registration and application fees range from $350 for registration of financial service providers and advisers to about $1,385 for authorised financial advisers (AFAs), and around $4630 for QFEs. Annual renewal fees will also be charged but at reduced amounts. The FSP ACT and the FAA will not be fully in force until the end of 2010 but the Register of Financial Service Providers will open in May 2010 so that financial service providers can apply for registration and AFAs can seek authorisation from the Securities Commission. Submissions on the discussion document close on 13 November.
Click here to read the press release

The structure and ownership of New Zealand companies
The Capital Market Development Taskforce has released the following research papers:

• The Structure and Ownership of New Zealand Companies and its Impact on Capital Market Development
• Capital Market Integration: The Structure of the New Zealand Economy and its Capital Markets

The Taskforce asked Professor Lewis Evans of Victoria University to look at how the structure and ownership of New Zealand companies influences the development of its capital markets. MED undertook additional research on how the structure and ownership of companies in New Zealand compares to other countries.
Click here for further details

Government extends time for submissions on broadband complementary measures
The Government has extended the time for interested parties to make submissions on the ultra-fast broadband complementary measures discussion document. The document was released earlier this month and interested parties had until 6 November to make a submission. This has been extended to 27 November. Submitters will also have the opportunity to make cross-submissions until 11 December.
Click here for the full media release

Closing date on finance company failures inquiry terms of reference extended
On 20 August, the Commerce Select Committee, chaired by former Minister of Commerce Lianne Dalziel, initiated an inquiry into finance company failures. The particular issues identified as the terms of reference for the inquiry relate to four broad areas: ensuring investors are well-informed about investment proposals; ensuring investors understand the implications of a moratorium proposal before voting; ensuring advance actions can be taken to reduce the chances of failure; and ensuring adequate measures or redress exist when failures occur. As a first step to the inquiry, submissions on the terms of reference were called for with a closing date of 15 October 2009. The committee has now extended the date for submissions to 12 November 2009.
Click here to read the 20 August media release
Click here to read the select committee's report

Real estate regulations
Four sets of regulations dealing with operational and technical details of the new real estate regime which commences on 17 November 2009 have been introduced. They are:

• the Real Estate Agents (Audit) Regulations 2009, to provide for the audit and use of trust accounts that agents must operate;
• the Real Estate Agents (Complaints and Discipline) Regulations 2009, which relate to the content and form of complaints about licensees and the conduct of proceedings before the Disciplinary Tribunal and the responsibilities of the chairperson of the Tribunal under the Real Estate Agents Act 2008;
• the Real Estate Agents (Duties of Licensees) Regulations 2009 which prescribe two forms: an agent's statement of disclosure and a client's consent for a licensee or related person to acquire the client's property;
• the Real Estate Agents (Licensing) Regulations 2009, which provide details for the licensing process, including application forms and the qualification requirements for each of the three classes of licencee (agent, salesperson, and branch manager).

For Bell Gully commentary on the new real estate regime click here

Companies Office

The Financial Service Providers Register
The Financial Service Providers (Registration and Dispute Resolution) Act 2008 became law on 29 September 2008. Under the Act everyone who provides, or offers to provide, a financial service will shortly be required to register as a Financial Service Provider. The Financial Service Providers Register will be maintained by the New Zealand Companies Office and the Companies Office has now opened a website for the register. It is expected that the register will be open to accept applications from 1 May 2010. When the register goes live there will be a transition period of approximately six months, allowing existing financial service providers time to register before it becomes compulsory. It is envisaged that all financial service providers will be registered by the end of 2010, but this date is subject to Government approval. The Registrar of Companies is also the Registrar of Financial Service Providers and will be providing further information about the registration process over the coming months.
Click here for further details

Ministry for the Environment

Advice on a moderated NZ ETS
The Ministry for the Environment has released cabinet papers and briefing notes on amendments to the New Zealand Emissions Trading Scheme (NZ ETS) on its website.
Click here to access the full list of documents

Electricity Commission

Consultation on draft guidelines for reporting breaches of the Electricity Governance Rules
The Electricity Commission is seeking participants' views on draft guidelines for reporting breaches of the Electricity Governance Rules. Submissions close on 20 November 2009.
Click here for further details

Minor rule changes
The Electricity Commission is proposing a large number of minor editorial changes to the Electricity Governance Rules 2003 (Rules). The proposed changes are set out in Proposed Minor Editorial Rule Changes. Few changes are being proposed to parts E and J of the Rules as editorial amendments are being processed as part of separate reviews of those parts. No changes are proposed to part D as it is also being reviewed separately. The proposed changes will give effect to paragraphs 3, 8 and 9 of the Government Policy Statement on Electricity Governance. They will promote "clear and effective … Rules" (paragraph 3), improve the quality of the information available to participants under the Rules (paragraph 8), and will improve the clarity of the Rules, thereby assisting the Commission's administration of the Rules (paragraph 9). Submissions should be received by 29 January 2010.
Click here for more

Transmission pricing review: high-level options
A Transmission Pricing Review has been initiated to undertake a wide-ranging review of options for the allocation methodology for transmission costs. As part of the review's first stage a consultation document on high-level options has been published.
Click here for more

Scarcity pricing and compulsory contracting: options
There are concerns that existing market arrangements are failing to provide adequate measures to support security of supply, particularly in dry years. Two options to address scarcity pricing and compulsory contracting are now being consulted on with submissions closing on 7 December 2009.
Click here for more

AUFLS exemptions – issues and options
Automatic under frequency load shedding (AUFLS) is one of a set of measures/controls employed to avert a cascade failure of the power system in the event of the loss of the HVDC bipole or the equivalent quantity of power generation. The current AUFLS exemptions are due to expire on 31 March 2010. The Electricity Commission is consulting on options to clarify the circumstances and conditions under which AUFLS providers might be relieved of their AUFLS obligations. Submissions close on 13 November 2009.
Click here for more

Proposed amendments to parts E and J of the Rules (and consequential amendments to parts A and H of the Rules)
The Electricity Commission has published the submissions it has received on its proposed amendments to parts E and J of the Electricity Governance Rules 2003.
Click here to read the submissions

Publication of EGR Committee Minutes
The Electricity Commission is seeking participants' views on a proposal to publish the minutes of the Electricity Governance Rules Committee's meetings. It has been suggested that publishing the minutes of the EGR Committee's meetings would be desirable to provide greater transparency about EGR Committee decisions and operations, improve participants' understanding of the reasoning behind committee decisions and assist in clarifying how the committee is interpreting the Rules.
Click here for more

Securities Commission

Parliament passes law on money laundering
The Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) came into force on 16 October 2009, but implementation of the AML/CFT regime is to be staggered to allow reasonable time between the issuing of regulations and the commencement of obligations under the new AML/CFT regime. The Government will cooperate with the sector regarding the sequencing and implementation of the Act. Next steps include the development of more detailed regulations. Q&As about the legislation are available on the Ministry of Justice's website and the Securities Commission, which is one of three agencies responsible for supervision and enforcement of the Act, has also set up a site on the implementation of the new AML/CFT regime. You can register with the Securities Commission to receive email alerts and new information on its site. Provisions relating to cross-border transportation of cash duties and obligations come into effect in October 2010.
Click here to read the press release
Click here for Bell Gully's earlier commentary on the Act

Key findings of Cycle 10 of the Financial Reporting Surveillance Programme
The Securities Commission recently completed Cycle 10 of its ongoing financial reporting surveillance programme, which involved reviewing the financial statements of 20 issuers. It looked at a mix of listed and unlisted entities with balance dates between January and March 2009. Some of the inadequacies identified by the Commission in this latest cycle included:

• disclosure of significant assumptions relating to revaluations of assets;
• impairment of assets and the associated disclosures;
• disclosure of significant judgments, key assumptions and major sources of estimation uncertainty;
• disclosures relating to financial instruments;
• related party information, in particular, key management personnel compensation (including directors);
• expense disclosure; and
• classification of debt.

The Commission is currently discussing these findings with issuers and will publish its conclusions in its Cycle 10 report.
Click here for further details

Directors warned about transparency of financial statements
As a result of the Securities Commission's findings in the latest cycle of its ongoing financial reporting surveillance programme, the Commission is warning company directors not to sign off financial statements that do not comply with New Zealand International Financial Reporting Standards (NZ IFRS), because they could be failing in their duty to inform investors. The Commission's chair Jane Diplock says all directors should remember that ensuring financial statements comply with the law was a primary duty of company directors. NZ IFRS have been mandatory in New Zealand since 2007. "Company directors should remember that they can be prosecuted under the Financial Reporting Act if their company publishes non-compliant financial statements. If misleading financial information is published in a prospectus, directors can also face prosecution under the Securities Act," she says. 
Click here for more details

SECURITIES ACT EXEMPTION NOTICES

The following Securities Act Exemption Notices have been published for this period:

Securities Act (Babcock & Brown Infrastructure Limited and Babcock & Brown Investor Services Limited) Exemption Notice 2009
This notice, which came into force on 14 October and expires on 30 November 2010, exempts Babcock & Brown Infrastructure Limited (BBIL) and Babcock & Brown Investor Services Limited (BBIS), subject to conditions, from sections 33(3), 34(2)(a), 37A(1)(a), and 51 to 54 of the Securities Act 1978 and regulation 5(1)(a) and (c) of the Securities Regulations 2009 in respect of certain stapled securities. The stapled securities result from the conversion on 17 November 2009 of subordinated prime adjusting reset convertible securities (bonds) issued by BBI Networks (New Zealand) Limited (BBINNZ). The bonds were issued by BBINNZ under a trust deed dated 7 September 2004. That deed was entered into between BBINNZ as issuer, The New Zealand Guardian Trust Company Limited as trustee, BBIL, and BBIS as responsible entity of the Babcock & Brown Infrastructure Trust (the trust). Bond holders have a right to convert the bonds held into stapled securities that comprise shares in BBIL and units in the trust.

Securities Act (Cash and Term Portfolio Investment Entities) Exemption Notice 2009
This notice, which came into force on 9 October 2009 and expires on 31 October 2014, grants exemptions in respect of certain units issued by certain issuers in portfolio tax rate entities, namely call fund units and term units (together the PIE funds). The exemptions relate to receipt of investment statements and register and certificate requirements. The exemptions in respect of investment statements follow the exemptions granted in the Securities Act (Continuous Debt Issues) Exemption Notice 2002, except that the conditions of the exemptions in this notice in respect of units in the PIE call fund are new. The exemptions in respect of register and certificate requirements follow the exemptions and conditions in the Securities Act (Continuous Debt Issues) Exemption Notice 2002.

Securities Act (Deutsche Bank Aktiengesellschaft) Exemption Notice 2009
This notice, which came into force on 9 October 2009 and expires on 30 September 2014, exempts Deutsche Bank Aktiengesellschaft (DB) and every person acting on its behalf from section 53E(1) of the Securities Act 1978. The effect of the exemption is to relieve DB from the requirement to have its financial statements audited by a qualified auditor as defined in section 2C of the Act. The exemption will allow DB to have its financial statements audited by its German auditors instead.

Securities Act (International Finance Corporation) Exemption Notice 2009
This notice, which came into force on 9 October 2009 and expires on 31 August 2014, exempts the International Finance Corporation (IFC) from sections 33(2), 37, 51, 52, 54, and 54B(3) of the Securities Act 1978 in relation to debt securities issued by the IFC.

FINANCIAL REPORTING ACT EXEMPTION NOTICES

The following Financial Reporting Act Exemption Notices have been published for this period:

Financial Reporting Act (Deutsche Bank Aktiengesellschaft) Exemption Notice 2009
This notice, which came into force on 9 October 2009 and expires on 30 September 2014, exempts the directors of Deutsche Bank Aktiengesellschaft (DB) from various provisions of the Financial Reporting Act 1993. The effect of the exemptions is to provide relief to the directors of DB from the preparation, content, auditing, and filing requirements of the Act. These exemptions are granted on the condition that DB prepares and publicly files financial statements that it is required to prepare under the financial reporting requirements of Germany.

Financial Reporting Act (International Finance Corporation) Exemption Notice 2009
This notice, which came into force on 9 October 2009 and expires on 31 August 2014, exempts the directors of the International Finance Corporation (IFC) from various provisions of the Financial Reporting Act 1993.The effect of the exemptions is to provide relief to the directors of the IFC from requirements of the Act relating to the preparation, content, auditing, and filing of financial statements. The exemptions are granted on the conditions that the IFC prepares financial statements and publicly files them with the United States Securities and Exchange Commission under the laws of the United States of America (the United States), that those financial statements comply with generally accepted accounting practice in the United States (US GAAP) or International Financial Reporting Standards approved by the International Accounting Standards Board (IFRS), that they include or are accompanied by an auditor's report, and that the directors of the IFC add information or explanations as required to ensure that they give a true and fair view of the matters to which they relate.

Takeovers Panel

Policy on the approval of independent advisers
The Takeovers Panel has issued its policy for the approval of independent adviser applications for cases where independent adviser reports or certifications are required by provisions of the Takeovers Code.
Click here to read the new policy

Takeovers Panel calls for submissions on upstream takeovers policy
The Takeovers Panel is inviting submissions on a second discussion paper it has published on upstream takeovers. The Panel issued the first upstream takeovers consultation paper in April 2009. That paper:

• discussed the Panel's current approach to granting exemptions from the Takeovers Code in respect of upstream takeovers;
• explained the problems that the Panel faced with that approach;
• discussed and compared how other jurisdictions deal with upstream takeovers; and
• set out a range of potential options for addressing the problems.

After considering the submissions received in response to the April 2009 consultation paper, the Panel has now identified a preferred option, which is different from any of the options that were proposed in the April 2009 paper. The Panel is seeking submissions on its preferred option to assist it to finalise its view.
Submissions close on 27 November.
Click here for the full press release

TAKEOVERS CODE EXEMPTION NOTICE

The following Takeovers Code Exemption Notices have been published for this period:

Takeovers Code (Southern Travel Holdings Limited) Exemption Notice 2009
The Takeovers Panel has granted exemptions (subject to conditions) from rule 7(d) and rule 16(b) of the Takeovers Code in respect of a proposed rights issue to be conducted by Southern Travel Holdings Limited (STH), which is to be fully underwritten by Rodney Walshe Limited (RWL). If the rights issue is undersubscribed and RWL is called upon to take up the shortfall under its underwriting agreement, the resulting allotment to RWL will increase its voting control in STH, when taken with its associates, above 25.66%. This will trigger rule 6 of the Takeovers Code. This notice applies to acts or omissions occurring on or after 1 October 2009 and expires on 31 January 2010.

Takeovers Code (Auckland Energy Consumer Trust) Exemption Notice 2009
The Takeovers Panel has granted an exemption from rule 6(1) of the Takeovers Code to any person who is appointed a trustee of the Auckland Energy Consumer Trust and who, as a result of that appointment, becomes the holder or controller of an increased percentage of the voting rights in Vector Limited.The notice effectively replaces the exemption in clause 4 of the Takeovers Code (Auckland Energy Consumer Trust) Exemption Notice 2004, which expired on 31 July 2009. This notice applies to acts or omissions occurring on or after 26 October 2009 and expires on 26 October 2014.

Takeovers Code (Delegat's Group Limited) Exemption Notice 2009
The Takeovers Panel has granted exemptions from rule 6(1) of the Takeovers Code (the Code) to:

• Catherine Rachael Delegat and André Gaylard as trustees of the Jakov Nikola Delegat (Jim Delegat) Business Trust (a family trust for the benefit of the family of Jim Delegat); and
• Rosamari Suzan Delegat as trustee of the Delegat's Share Protection Trust (also a family trust for the benefit of the family of Jim Delegat),

in relation to the transfer of Delegat's Group Limited shares to the trustees as part of a family estate planning reorganisation. This notice applies to acts or omissions occurring on or after 6 October 2009 and expires on 31 December 2009.

New Zealand Exchange (NZX)

NZX consults on new derivatives market rules
NZX is proposing to launch a derivatives market that will be cleared and settled through NZX's proposed new clearing and settlement system. Initially, NZX plans to launch a whole milk powder future that will enable dairy industry participants worldwide to hedge price risk in the whole milk powder market. Over time NZX anticipates that the types of contracts tradeable on its derivatives market will expand. NZX is seeking comment on the Rules and Procedures that will regulate the derivatives market it intends to operate. Below is a consultation memorandum relating to the Rules and Procedures for that market, along with the draft Rules and Draft Procedures. Submissions close on 30 October 2009.
Derivatives Market Consultation Memorandum
Derivatives Market Rules
Derivatives Market Procedures

Australian Government

Productivity Commission releases recommendations on executive remuneration
The Productivity Commission has released its Discussion Draft on Executive Remuneration in Australia. The Commission proposes reforms that would improve the accountability of boards, remove conflicts of interest and enhance shareholder engagement on remuneration. The inquiry's chairman Gary Banks observed that 'on the evidence, the strong growth in executive pay has had much to do with the growth and global reach of Australian companies themselves. But there have also been episodes of excess and poor pay practices'. The Commission is proposing a package of changes to the Corporations Act and ASX listing rules, including:

• barring executives from sitting on remuneration committees;
• requiring that remuneration consultants report to boards independently of management;
• prohibiting directors and executives voting their shares and any undirected proxies on remuneration issues.

Click here to read the full media release

Australian Securities and Investments Commission (ASIC)

Significant benefits from trans-Tasman mutual recognition of securities offerings
Recent research has found that issuers using the trans-Tasman mutual recognition of securities offerings regime have saved on compliance costs for offering securities in the host country by up to 95% in some cases. The research, conducted by the ASIC in consultation with the New Zealand Securities Commission, found that the regime has reduced additional legal and documentation costs for some issuers by between approximately 55 and 95%. The time to go to market was also significantly reduced – in one case by 25%. Since its establishment in June 2008, the regime has been used by New Zealand companies seven times for capital raising in Australia. Australian companies have used it 253 times, predominantly for offering managed funds in New Zealand.
Click here for the full media release

ASIC consults further on facilitating online financial services disclosures
ASIC has issued a consultation paper seeking further feedback on how to better facilitate the delivery of financial services information online.
Click here for more details

New Zealand Commerce Commission (NZCC)

Media releases

The NZCC has issued the following media releases:

Telecommunications

• Telecom blocked competition in high-speed data transmission markets
  The High Court has found that Telecom (Telecom Corporation of New Zealand and Telecom New Zealand Limited) used its substantial market power to prevent and deter competition in markets involving high-speed data transmission.
  Click here for more

• Commerce Commission consults on Telecom Wholesale loyalty offers
  As part of its investigation into alleged breaches of the Separation Undertakings by Telecom's Wholesale business unit, the NZCC is seeking submissions on its preliminary views on the meaning of the 'equivalence of inputs' and 'non-discrimination' obligations contained in the undertakings.
  Click here for more

• Fair Trading Act charges laid against Vodafone
  The NZCC has laid charges against Vodafone for alleged breaches of the Fair Trading Act 1986 in relation to various broadband and mobile phone promotions.
  Click here for more

Consumer issues

• Electricity company fined for misleading power bill review
  An energy company has pleaded guilty to breaching the Fair Trading Act and has been fined $17,000 in the Tauranga District Court. TrustPower, an electricity generator and retailer, was fined for misleading its customers about the nature of a power bill review service.
  Click here for more

• Franchise prosecution welcomed
  The NZCC has welcomed the conviction and sentencing of Stewart John Brown and Robert Llewelyn Parr, afterboth pleaded guilty to Crimes Act charges of obtaining by false pretences and obtaining by deception in relation to franchise companies Wizard Vapour Technology Ltd and Clean Co International Limited.
  Click here for more

• Warning for importing unsafe toy tool set
  An Auckland-based importer has been warned by the NZCC that a toy tool set imported from China and sold in budget variety stores may have breached an unsafe goods notice relating to levels of lead in children's toys. In late 2007, importer United Top KidSmart brought into New Zealand 96 plastic tool sets. Independent testing found some parts of the tool set have paint containing more than 21 times the maximum level of lead allowed.
  Click here for more

Australian Competition and Consumer Commission (ACCC)

ACCC media releases

The ACCC has issued the following media releases:

Mergers and acquisitions

• ACCC not to oppose acquisition of Merck & Co Inc by Schering Plough Corporation
  The ACCC has announced that it will not oppose the proposed acquisition of Merck & Co Inc by Schering-Plough Corporation, following the sale of an overlapping business and the provision of an undertaking.
  Click here for more

• ACCC opposes tax compliance software acquisition
  The ACCC has announced that it opposes the proposed acquisition of Ernst & Young's tax compliance software business by Thomson Reuters. "The ACCC concluded the acquisition is likely to substantially lessen competition in the markets for the supply of income tax and fringe benefits tax compliance software," ACCC Chairman Graeme Samuel said.
  Click here for more

• ACCC calls for comment on proposed acquisition of Danks by Woolworths and Lowe's
  The ACCC has issued a Statement of Issues on the proposed acquisition of Danks Holdings Limited by a joint venture controlled two-thirds by Woolworths Limited and one-third by Lowe's Companies, Inc.
  Click here for more

• ACCC calls for comment on proposed acquisition of ITC Timber Pty Ltd by Gunns Limited
  The ACCC has issued a Statement of Issues on the proposed acquisition of ITC Timber Pty Ltd by Gunns Limited, seeking further information on certain competition issues which have arisen from the ACCC's market inquiries to date.
  Click here for more

Market behaviour

• ACCC institutes proceedings against Thai Airways for alleged price fixing of air freight
  The ACCC has instituted proceedings in the Federal Court against Thai Airways International Public Company Limited. Thai Airways International Public Company Limited is the 11th airline to be the subject of ACCC proceedings for alleged price fixing in the air cargo industry.
  Click here for more

• ACCC proposes to allow councils' collective waste management plan
  The ACCC has proposed to allow four southern Sydney councils to jointly tender and contract for the provision of residual waste transfer, processing and disposal services in their local government areas.
  Click here for more

• Transparency is key for drug industry relationships
  The ACCC has issued a draft determination proposing to grant authorisation for five years to Medicines Australia's 16th edition of its Code of Conduct. The code sets standards for the marketing and promotion of prescription pharmaceutical products in Australia.
  Click here for more

• ACCC seeks comment on proposal at port terminals
  The ACCC has issued a draft decision proposing to grant conditional authorisation to Australian Amalgamated Terminals Pty Ltd to allow it to operate motor vehicle and general cargo handling facilities, known as terminals, at five ports around Australia.
  Click here for more

• ACCC proposes to approve long term port solution
  The ACCC has issued a draft decision proposing to approve the Capacity Framework Arrangements which form part of the integrated long term solution to the ongoing capacity constraints in the Hunter Valley coal chain.
  Click here for more

Telecommunications

• Proposed variation to class exemptions for wholesale voice services
  The ACCC released a draft decision proposing to vary the class exemptions granted in August and October 2008 for the wholesale line rental, local carriage service and public switch telephone network originating access services. The effect of the variations would be to align the obligations of Telstra and other providers of these services.
  Click here for more

Access

• ACCC invites comments on proposed amendments to water market rules and water charge (termination fees) rules
  The ACCC is responding to a request from the Minister for Climate Change and Water Penny Wong for advice on proposed amendments to the Water Market Rules 2009 and Water Charge (Termination Fees) Rules 2009, including draft amendments.
  Click here for more

Consumer issues

• ACCC accepts undertaking over breach of bicycle standard
  The ACCC has accepted court enforceable undertakings from Dirt Works Australia Pty Limited after it acknowledged supplying bicycles that did not comply with the mandatory standard for pedal bicycles.
  Click here for more

• Federal Court declares resume writing business misled business owners
  The Federal Court, Perth has declared that Burnan Pty Ltd, trading as Resumé Service, engaged in misleading or deceptive conduct in relation to the promotion and sale of resumé writing businesses to the public. This follows action taken by the ACCC.
  Click here for more

• ACCC institutes proceedings against Wilson Parking Australia 1992 Pty Ltd
  The ACCC has instituted proceedings in the Federal Court against Wilson Parking Australia 1992 Pty Ltd alleging that Wilson misrepresented the number of mobile security patrol inspection services it had provided to certain customers.
  Click here for more

• ACCC warns consumers about bushfire bunker representations
  Consumers must carefully examine representations made about fire bunkers before they buy, ACCC chairman Graeme Samuel warned. "The ACCC is concerned that some web-based advertising may have given consumers the impression that there was an Australian Standard for bushfire bunkers which their product met. The simple fact is that there is currently no Australian Standard for bushfire bunkers."
  Click here for more

• ACCC warns about scam business directory offers
  Businesses have been warned to watch out for unsolicited emails or letters which claim to offer 'free' business directory listings. The ACCC warns that some offers appear to be nothing more than scams.
  Click here for more

• ACCC questions latest Coles fuel discount promotion
  The ACCC was advised of a new fuel discount promotion Coles intended to start. Following issues raised by the ACCC, Coles began the process of withdrawing the offer.
  Click here for more

• Former Craftmatic director gives undertakings to Federal Court
  ACCC court action was finalised against Craftmatic Australia Pty Ltd and two former staff members after undertakings were given to the Court by former director, Ashley Day and orders were made. Craftmatic used misleading and unfair tactics to convince elderly people to accept an in-home presentation by one of Craftmatic's sales representatives.
  Click here for more

• ACCC institutes proceedings against Refund Home Loans and Wayne Ormond
  The ACCC has commenced proceedings against Refund Home Loans Pty Ltd and its managing director and founder Wayne Rodney Ormond alleging they made false and misleading representations in breach of the Trade Practices Act 1974 about having a special relationship with the ACCC.
  Click here for more

• ACCC proposes to revoke immunity for eDosh's planned online commission scheme
  The ACCC has issued a draft notice proposing to revoke a notification lodged by Edosh Pty Ltd through which it intends to offer rebate and referral commissions to customers who join its website and buy goods or services through the site, or refer others to buy through the site.
  Click here for more

• Leading Australian online retailer offers redress to consumers for misleading about warranties, refunds
  Online consumers will be better informed about their warranties and returns rights after ACCC action. "The ACCC is concerned that many online sites misrepresent consumers' rights and is putting these companies on notice that they are in for special attention," ACCC chairman Graeme Samuel said.
  Click here for more

Legislation round-up

The following is an overview of the status of all legislation promulgated during the period from 8 October 2009 to 28 October 2009 or currently before Parliament.

If you require any further information or advice on any of the legislation listed below, or would like our assistance with making a submission to a select committee on any bill, please contact your usual Bell Gully adviser.

New Acts

Act	Date Act is in force
Anti-Money Laundering and Countering Financing of Terrorism Act 2009	Parts 1 and 4 (except section 162) come into force on 17 October 2009. Section 68 to 71, 106 to 115, and 163 come into force on 16 October 2010. Except as provided in subsection (5), the rest of the Act comes into force on a date to be appointed by the Governor-General by Order in Council. One or more Orders in Council may be made appointing different dates for the commencement of different provisions. However, section 162 will not be brought into force unless every provision of Part 2 has been brought into force.
Bail Amendment Act 2009	28 October 2009
Crimes Amendment Act	Yet to receive assent
Criminal Investigations (Bodily Samples) Amendment Act	Yet to receive assent
Domestic Violence Amendment Act 2009	Section 9 comes into force 1 July 2009, the rest of the Act came into force 28 October 2009
Land Transport (Enforcement Powers) Amendment Act 2009	Sections 9, 10, 17, 18, 20, 21, and 40(2) come into force on a date appointed by the Governor-General by Order in Council.   Sections 4(2) and (3), 5, 13 to 16, 34, and 39(2) come into force on 1 November 2009.   The rest of this Act comes into force on 1 December 2009.
Local Government Amendment Act	Yet to receive assent
New Zealand Superannuation and Retirement Income Amendment Act	This Act comes into force on a date to be appointed by the Governor-General by Order in Council
Privacy Amendment Act	1 December 2009
Sentencing (Offender Levy) Amendment Act 2009	This Act comes into force on a date to be appointed by the Governor-General by Order in Council
Sentencing (Vehicle Confiscation) Amendment Act	1 December 2009
Sentencing Amendment Act (No 2) 2009	1 July 2010
Summary Proceedings (Vehicle Seizure) Amendment Act	1 December 2009
War Pensions Amendment Act	This Act comes into force on a date to be appointed by the Governor-General by Order in Council
Whakarewarewa and Roto-a-Tamaheke Vesting Act	Yet to receive assent

New Regulations

Regulation	Date regulation is in force
Animal Welfare (Glueboard Traps) Order 2009	30 November 2009
Criminal Proceedings (Access to Court Documents) Amendment Rules 2009	1 December 2009
Criminal Proceedings (Search Fees) Regulations 2009	20 November 2009
Criminal Proceeds (Recovery) Regulations 2009	1 December 2009
Deposit Takers (In Receivership or Liquidation) Exemption Notice 2009	9 October 2009
Deposit Takers (Payment Facility Providers) Exemption Notice 2009	16 October 2009
District Courts (Criminal Proceeds (Recovery) Act 2009) Amendment Rules 2009	1 December 2009
District Courts Fees Regulations 2009	20 November 2009
Financial Reporting Act (Deutsche Bank Aktiengesellschaft) Exemption Notice 2009	9 October 2009
Grey-Faced Petrel (Northern Muttonbird) Amendment Notice 2009	16 October 2009
High Court Fees Amendment Regulations 2009	20 November 2009
High Court Fees (Criminal Proceeds (Recovery) Act 2009) Amendment Regulations 2009	1 December 2009
Immigration (Transit Visas) Amendment Regulations 2009	30 November 2009
Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2008-09 Income Year) Order 2009	Applies to the 2009-09 income year.
Local Government Elected Members (2009/10) (Except Auckland) Amendment Determination 2009	23 October 2009
Real Estate Agents Act (Professional Conduct and Client Care) Rules 2009	17 November 2009
Securities Act (Babcock & Brown Infrastructure Limited and Babcock & Brown Investor Services Limited) Exemption Notice 2009	14 October 2009
Securities Act (Cash and Term Portfolio Investment Entities) Exemption Notice 2009	9 October 2009
Securities Act (Deutsche Bank Aktiengesellschaft) Exemption Notice 2009	9 October 2009
Securities Act (International Finance Corporation) Exemption Notice 2009.	9 October 2009
Sentencing (Instrument Forfeiture Orders) Amendment Regulations 2009	1 December 2009
Takeovers Code (Auckland Energy Consumer Trust) Exemption Notice 2009	This notice applies to acts or omissions occurring on or after 26 October 2009
Takeovers Code (Delegat's Group Limited) Exemption Notice 2009	This notice applies to acts or omissions occurring on or after 6 October 2009.

New Bills

Bill	Date of introduction	Type of bill
Border (Customs, Excise, and Tariff) Processing Bill	15 October 2009	Government
Dairy Industry Restructuring (Raw Milk Pricing Methods) Bill	28 October 2009	Government
Electoral (Administration) Amendment Bill	22 October 2009	Government
Employment Relations (Rest Breaks and Meal Breaks) Amendment Bill	27 October 2009	Government
Head of State Referenda Bill	14 October 2009	Member's
Injury Prevention, Rehabilitation, and Compensation Amendment Bill	22 October 2009	Government

Bills sent to select committees

Bill	Select Committee
Carter Observatory Act Repeal Bill	Education and Science Committee
Dairy Industry Restructuring (Raw Milk Pricing Methods) Bill	Primary Production
Electoral (Administration) Amendment Bill	Justice and Electoral Committee
Injury Prevention, Rehabilitation, and Compensation Amendment Bill	Transport and Industrial Relations Committee
Subordinate Legislation (Confirmation and Validation) Bill	Regulations Review Committee

Bills open for submissions

Bill	Select Committee	Closing date for submissions (2009)	Report due date
Border (Customs, Excise, and Tariff) Processing Bill	Government Administration Committee	30 October	16 November 2009
Education (Freedom of Association) Amendment Bill	Education and Science	31 March 2010	29 May 2010

Bills waiting on report back from select committees

Bill	Select Committee	Report due (2009)
Antarctica (Environmental Protection: Liability Annex) Amendment Bill	Foreign Affairs, Defence and Trade	20 February 2010
Arms Amendment Bill (No 3)	Law and Order	26 February 2010
Carter Observatory Act Repeal Bill	Education and Science Committee	20 November
Children, Young Persons, and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill	Social Services	17 April 2010
Climate Change Response (Moderated Emissions Trading) Amendment Bill	Finance and Expenditure	16 November 2009
Cluster Munitions (Prohibition) Bill	Foreign Affairs, Defence and Trade	28 January 2010
Dairy Industry Restructuring (Raw Milk Pricing Methods) Bill	Primary Production	2 March 2010
Education (Polytechnics) Amendment Bill	Education and Science	13 November
Electoral (Administration) Amendment Bill	Justice and Electoral	27 April 2010
Franklin District Council (Contribution to Funding of Museums) Amendment Bill	Local Government and Environment	30 April 2010
Infrastructure Bill	Transport and Industrial Relations	13 November 2009
Injury Prevention, Rehabilitation, and Compensation Amendment Bill	Transport and Industrial Relations Committee	12 February 2010
Inquiries Bill	Government Administration	28 January 2010
Land Transport (Driver Licensing) Amendment Bill	Transport and Industrial Relations	30 June 2010
Limitation Bill	Justice and Electoral	4 February 2010
Marine Reserves Bill	Local Government and Environment	30 December 2010
Marine Reserves (Consultation with Stakeholders) Amendment Bill	Local Government and Environment	30 December 2010
Methodist Church of New Zealand Trusts Bill	Finance and Expenditure	6 November
Motor Vehicle Sales Amendment Bill	Commerce Committee	30 December
Patents Bill	Commerce	30 March 2010
Private Security Personnel and Private Investigators Bill	Justice and Electoral	30 March 2010
Public Works (Offer Back of and Compensation for Acquired Land) Amendment Bill.	Local Government and Environment	17 December
Radio New Zealand Amendment Bill	Commerce	24 December
Remuneration Authority Amendment Bill	Transport and Industrial Relations	16 November
Sale and Supply of Liquor and Liquor Enforcement Bill	Justice and Electoral	30 June 2010
Sale of Liquor (Objections to Applications) Amendment Bill	Social Services	30 June 2010
Search and Surveillance Bill	Justice and Electoral	4 February 2010
Sentencing and Parole Reform Bill	Law and Order	30 November
Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill	Education and Science	30 November
Subordinate Legislation (Confirmation and Validation) Bill	Regulations Review Committee	23 November
Sustainable Biofuel Bill	Local Government and Environment	29 January 2010
Taxation (Consequential Rate Alignment and Remedial Matters) Bill	Finance and Expenditure Committee	16 November
Waikato-Tainui Raupatu Claims (Waikato River) Settlement Bill	Māori Affairs	31 December

Bills waiting for second and/or third readings

Bill	Links to select committee reports/SOPs
Aquaculture Legislation Amendment Bill (No 2)	Report of the Primary Production Committee
Biosecurity Amendment Bill	Report of the Primary Production Committee
Children, Young Persons and Their Families Amendment Bill (No 6)	Report of the Social Services Committee
Corrections (Contract Management of Prisons) Amendment Bill	Report of the Law and Order Committee
Crimes (Provocation Repeal) Amendment Bill	Report of the Justice and Electoral Committee
Criminal Investigations (Bodily Samples) Amendment Bill	Report of the Justice and Electoral Committee
Cultural Property (Protection in Armed Conflict) Bill	Report of the Government Administration Committee SOP 38
Dog Control Amendment Bill (No 2)	Report of the Local Government and Environment Committee
Education Amendment Bill	Report of the Education and Science Committee
Electricity (Continuance of Supply) Amendment Bill	Report of the Commerce Committee
Gambling Amendment Bill (No 2)	Report of the Government Administration Committee SOP 23SOP 65
Immigration Bill	Report of the Transport and Industrial Relations Committee SOPs 18, 31, 32, 68
Insolvency Amendment Bill	Report of the Commerce Committee
Judicial Matters Bill	Report of the Justice and Electoral Committee
Legal Services Amendment Bill	Report of the Justice and Electoral Committee
Maori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill	Report of the Maori Affairs Committee
Maori Trustee and Maori Development Amendment Bill	Report of the Maori Affairs Committee
Oaths Modernisation Bill	Report of the Government Administration Committee SOP No.103
Palmerston North Showgrounds Act Repeal Bill	Report of the Local Government and Environment Committee
Privacy (Cross-border Information) Amendment Bill	Report of the Justice and Electoral Committee
Public Health Bill	Report of the Health Committee
Rail Network Bill	Report of the Government Administration Committee
Regulatory Improvement Bill	Report of the Commerce Committee
Regulatory Responsibility Bill	Report of the Commerce Committee
Reserves and Other Lands Disposal Bill	Report of the Primary Production Committee
Residential Tenancies Amendment Bill	Report of the Social Services Committee
Serious Fraud Office (Abolition and Transitional Provisions) Bill	Report of the Law and Order Committee
Settlement Systems, Futures, and Emissions Units Bill	Report of the Commerce Committee SOP 79SOP 80SOP 81
Therapeutic Products and Medicines Bill	Report of the Government Administration Committee
Trade Marks (International Treaties and Enforcement) Amendment Bill	Report of the Foreign Affairs, Defence and Trade Committee
Trade (Safeguard Measures) Bill	Report of the Foreign Affairs, Defence and Trade Committee
Trustee Amendment Bill	Report of the Justice and Electoral Committee
Unit Titles Bill	Report of the Social Services Committee
Waka Umanga (Māori Corporations) Bill	Report of the Māori Affairs Committee