Patrick Smellie has an article on Scoop concerning the Prada/Walter report on the Securities Commission and another report by KPMG for Ministry of Economic Development.
Smellie notes that key recommendations of the Walter/Prada review, which interviewed 65 market participants, journalists and commission staff include:
- Giving the Securities Commission more extensive powers, including the power to issue binding rulings; stronger investigative and enforcement powers throughout the life cycle of a security; ability to supervise trustees, asset managers and auditors; and to more closely monitor directors’ activities;
- Fundamental reform of the Securities Act to a “higher level, principles-based model” which sets out the objectives, principles and coverage of market regulation;
- Making the commission responsible for a “future watch” function to advise governments on trends in international securities regulation;
- Consolidation of the currently fragmented responsibilities for securities regulation – described as “too many referees for a comparatively small playing field”, with clarification of overlaps, especially between the commission and the NZX, where streamlining is not possible;
- Considering creation of a separate court to deal with securities market criminal matters to speed up the judicial process;
- Appointing a CEO to manage the Securities Commission, now that it is growing so large, allowing the chair to concentrate on regulatory oversight
I have yet to read and digest the reports, but once I have done I will make some comments here. It will be interesting to see just what media play the reports and issues get. Some of the recommendations look as if they could be far reaching and perhaps overdue.