The closing of the Ministry of Business, Innovation and Employment’s (MBIE) Phase Two capital markets reform consultation today marks an important moment in the discussion about the future of New Zealand's capital markets.
The consultation followed an initial package of reforms focused on reducing prospective financial information and climate reporting requirements for certain issuers. Phase Two takes a broader look at New Zealand's capital markets framework, seeking feedback on a range of issues including continuous disclosure liability settings, deemed director liability, product disclosure statement requirements and wholesale investor settings
While the specific proposals are varied, the consultation raises a more robust question: what changes are needed to ensure New Zealand's capital markets remain dynamic, competitive and attractive in an increasingly global investment environment?
Capital markets play a vital role in supporting business growth, productivity and innovation. A regulatory framework that promotes efficient capital raising while maintaining market confidence can help businesses access funding, support investment opportunities and contribute to long-term economic development.
Importantly, the MBIE has also invited discussion on the bigger picture. Alongside the targeted proposals, the consultation creates an opportunity for market participants to consider whether there are more ambitious reforms that could strengthen New Zealand's capital markets and improve their competitiveness internationally.
We welcome this ambition. In our submissions, we have supported a bold approach to reform, including consideration of broader changes that could make New Zealand a more attractive place to raise and invest capital. We look forward to continuing to contribute to this important discussion as the reform programme progresses.
If you would like to discuss any of the issues raised in this article, or what the proposed reforms may mean for your organisation, please contact the authors or your usual Bell Gully adviser.
Disclaimer: This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
