Securities Industry Welcomes Moves To Boost NZ's Capital Markets, Support Company Growth On NZX

The Securities Industry Association (SIA) welcomes the announcement by Commerce and Consumer Affairs Minister, Hon. Andrew Bayly, to make much-needed changes to regulatory settings that will help boost New Zealand's capital markets and productivity.

"The securities industry welcomes Minister Bayly being a champion for New Zealand's capital markets. Government and industry worked together to develop a vision and roadmap for vibrant capital markets in the Capital Markets 2029 report. The Minister has been engaging with industry to understand its opportunities and challenges and is putting in place fit-for-purpose regulation and policy settings that will empower the capital markets ecosystem to keep momentum going toward that vision," says Securities Industry Association executive director Bridget MacDonald.

SIA member and FirstCape CEO Malcolm Jackson says, "The Government and industry can work together to eliminate unnecessary hurdles and pave the way for investment and savings innovation and growth. Our industry supports proportionate and risk-based regulation that creates a framework for New Zealand's capital markets to thrive and contribute positively to the New Zealand economy. Our regulatory environment should help attract new listings and encourage listed companies to raise capital and grow while providing the necessary safeguards for investors and investor confidence."

"We are extremely encouraged by the direction that is being set by Minister Bayly. Progressing this package of reforms will assist companies in attracting much-needed investment capital for growth and innovation and give Kiwis an opportunity to be a part of that growth story. Reviewing KiwiSaver liquidity settings will allow fund managers to refresh their approach to investing in new companies and infrastructure projects, potentially leading to improved product offerings for New Zealanders," says Malcolm.

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SIA supports the government's plans to make Prospective Financial Information (PFI) voluntary for companies and looks forward to contributing to the consultations and robust conversations on climate-related disclosure reporting and director liability settings, the review of KiwiSaver settings to encourage more investment into New Zealand infrastructure and the proposed reforms to support listed companies. Changes in these areas are critical to reducing the compliance and cost burden on NZX-listed companies or potential listers and facilitating opportunities for more Kiwis to access financial advice products and services and invest in New Zealand.

Neil Paviour-Smith, Managing Director, Forsyth Barr and SIA member, says, "We are heartened the Minister has directed officials at the Ministry for Business, Innovation and Employment (MBIE) and Financial Markets Authority (FMA) to find solutions to inefficiencies in the capital markets and provision of financial advice."

"It is fantastic to have Minister Bayly's support and engagement to help unlock the potential of our capital markets and we look forward to officials working with us next year. We have an opportunity to help New Zealanders get ahead, New Zealand companies grow and innovate, and find ways to enhance New Zealand's economic well-being and be more globally competitive. The capital markets stand ready to support investment into infrastructure projects, for example," Neil says.

"Government, agencies, regulators and industry all have a part to play in bolstering our capital markets' success and boosting productivity for New Zealand. We all want the same outcomes – vibrant and growing capital markets, pathways for companies to access capital for growth and innovation, and opportunities for Kiwis to invest in their financial future and invest in New Zealand. It all contributes to a thriving and sustainable economy, meaning more jobs and investment in schools, hospitals and infrastructure. By government taking a partnership approach to investment in productive assets and engaging with industry in a meaningful way, we can work on these shared goals cohesively and collaboratively to get results more efficiently and effectively," says Bridget.

About SIA

SIA represents the shared interests of sharebroking, wealth management and investment banking firms that are accredited NZX Market Participants. SIA advocates for a trusted, vibrant and resilient financial market ecosystem that helps New Zealand's people, businesses and economy to grow and prosper.

SIA members employ more than 550 accredited NZX Advisers, NZDX Advisers and NZX Derivatives Advisers, and more than 540 Financial Advisers nationwide. The combined businesses of our members work with over 1 million New Zealand retail investors, with total investment assets well-exceeding $100 billion, including over $90 billion held in custodial accounts. Members also work with local and global institutions that invest in New Zealand.

SIA members:

ASB Securities Limited

Craigs Investment Partners Limited

Forsyth Barr Limited

Jarden Wealth Ltd (FirstCape)

Jarden Securities Ltd

JBWere (NZ) Pty Limited (FirstCape)

Macquarie Securities (NZ) Limited

Sharesies Ltd

Somerset Smith Partners Limited

UBS New Zealand Limited

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