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Industry Welcomes Government Response To CMD Task Force Report

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Fuseworks Media
Fuseworks Media
Industry Welcomes Government Response To CMD Task Force Report

"The Government response to the Capital Markets Development Task Force report is welcomed by the Investment Savings and Insurance Association (ISI) as an important step in the right direction. The appointment of the Hon. Simon Power as the Minister responsible for implementation sends a clear signal of the importance the Government has placed on these recommendations" said Vance Arkinstall, CEO of ISI.

A number of the recommendations will require amendment of the Securities Act, which is well overdue. "It is widely accepted that legislation and regulation in New Zealand have not kept up with the pace of regulatory change in overseas jurisdictions", Mr Arkinstall said.

"ISI is reviewing the Task Force report with a view to voluntary implementation of Task Force recommendations where possible. The industry acknowledges that improved and meaningful disclosure will assist investors and consumers, and will help to improve confidence and trust which are flagging as a result of the effects of the Global Financial Crisis", said Vance Arkinstall.

"ISI has already forwarded to Government and officials examples of how key information can be provided in the form of a single A4 sheet rather than the 30 or 40 pages of legally compliant, but rarely read disclosure material that is currently required. We can quickly learn from the work that is taking place in Canada, USA and Europe how we can make disclosure meaningful for investors," said Mr Arkinstall.

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