Capital Market Reform Plan Supported

Timely Implementation of Capital Market Reform Plan Supported

The Auckland Chamber of Commerce has welcomed the Government’s focus on improving investor protection in responding to all 60 of the recommendations in the Capital Markets Development Taskforce report.

Michael Barnett, Chamber CEO, said the Government had been talking for some time about encouraging people to move away from housing towards the share market as the primary area for investing.

“But why would they when the collapse of the sharemarket in 1987 is followed by a succession of financial company collapses?”

The promise to introduce plain language investment statements and prospectuses and place warnings on riskier products was a positive step in the right direction, but needs to be implemented with a sense of speed and urgency, said Mr Barnett.

Complimenting Commerce Minister Simon Power for responding promptly to the Taskforce group’s report delivered to Government in December, Mr Barnett said helping New Zealanders become confident and informed about investing in appropriate New Zealand companies was part of the step change needed to secure a high growth-led economy.

“For people to be more confident about putting their savings into New Zealand’s capital markets, they need to be able to understand the risks, get advice they can trust and be able to make informed choices,” agreed Mr Barnett.

Plain language financial investment documents supported by an education programme to lift community understanding of the finance market and the opportunities it offers to New Zealanders when looking at options to invest and save are good basic steps to lifting the long-term performance of the economy, said Mr Barnett.

ENDS

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