Securities Commission Report On Insider Trading Welcomed - Swain

Commerce Minister Paul Swain has welcomed the release yesterday of the New Zealand Securities Commission report on Insider Trading Law and Practice.

The report by the Securities Commission provides a worthwhile investigation into the Fletcher Challenge case and suggests detailed and technical recommendations for change to the existing insider trading regime in New Zealand. The Government recently released a discussion document on insider trading with submissions having closed 13 October 2000.

"While our current review is primarily focussed on the prevention, detection and enforcement of insider trading," Paul Swain said, "I have also asked for comments on the definition of insider. The Securities Commission recommendations for change and comments in their report on the definitions will be useful and taken into account in the context of the Government’s current review."

Paul Swain said, "I will be meeting with the Securities Commission soon to discuss their report and receive further comment from them on how they believe the definitions on insider can be improved. The Government is keen to identify any problems with the existing regime so as to ensure that investors have confidence in the robustness of our market."

Mr Swain will be making announcements about insider trading early next year.

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