Recent developments

Financial intermediaries: consultation on options for change
The Task Force on the Regulation of Financial Intermediaries, which is considering the regulation of financial intermediaries such as brokers and other financial advisers in New Zealand, has consulted on various options to improve quality standards in the industry.

Report on compliance by registered banks with the Securities Act 1978
In a recent newsletter, the Securities Commission says it has found that most banks are aware of their statutory obligations to ensure that customers receive investment statements before applying for term deposits and other investment products.

Internet banking and the Code of Banking Practice
The Code of Banking Practice is due for review this year. The Banking Ombudsman has said that this is an opportunity to develop some more specific standards to deal with the problems that are starting to arise with internet (and phone) banking.

Shortcomings revealed in Securities Commission review of 2004 financial reports
The Securities Commission has completed the first stage of its financial reporting surveillance programme by reviewing a selection of audited full-year reports. It found shortcomings in 40% of the reports.

Website information must not be misleading
The Commerce Commission has succeeded in a criminal prosecution under the Fair Trading Act 1986 over a website promotion that made inaccurate representations about the availability and prices of various items.

Securities Commission takes action against property developers
The Securities Commission is clamping down on property developers and their advisers who do not properly consider securities law issues when offering and allotting securities to raise funds for developments.

Publication of CCCFA guide
The Commerce Commission has published an 80-page general guide for the credit industry on the Credit Contracts and Consumer Finance Act 2003.

Immediate disclosure of changes to large public shareholdings required
The Securities Commission has announced that it may take action against people with substantial shareholdings in listed companies who fail to disclose, or do not make timely disclosure of, changes to their interests.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.