The Financial Markets Authority (FMA) yesterday issued
a
consultation paper on how to prepare prospectuses and
investment statements.
This is a good initiative and worthy of the FMA's mandate to
educate the market regarding its expectations as a regulator
– something that the Securities Commission was not always
very good at.
Our initial assessment is that much of the guidance proposed is
sensible and reflects current best practice. However, in places, we
think that the FMA's approach is too heavy handed –
seeking to prescribe requirements which are not material or
currently required by New Zealand law.
Submissions are due by Friday, 9 March
2012.
Indicative timeline
The FMA plans to discontinue pre-registration prospectus vetting
by the end of March, and is aiming to have the final guidance note
published in the week beginning 26 March.
