New Zealand financial market rules aim for clearer investment documents

New regulations aimed at helping investors understand financial documents were approved by New Zealand Commerce and Consumer Affairs Minister Paul Goldsmith on Tuesday.
The regulations, the second tranche under the Financial Markets Conduct Act, would come into effect on Dec. 1 and were the last major step in a once-in-a-generation reform of the country's financial markets, Goldsmith said in a statement.
The regulations covered the governance of financial products, licensing requirements for financial service providers and conduct obligations for discretionary investment management services.
"One of the key changes in these regulations is the introduction of a new disclosure regime that will mean shorter, clearer documents that are much more tailored to investors' needs, " Goldsmith said.
"In addition, a new online register for offers of financial products will ensure that information on financial products and managed investment schemes is easily accessible and comparable. This will also be up and running from Dec. 1."
The Financial Markets Conduct Act 2013 governs how financial products are created, promoted and sold, and the ongoing responsibilities of those who offer, deal and trade them.
The first tranche of regulations under the act came into effect on April 1 and comprised general fair dealing obligations, key growth-focused initiatives, and the licensing of financial market participants, including for crowd-funding.
Market participants will have up to 24 months from Dec. 1 to comply with the new disclosure and governance requirements.