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The Securities Commission – what we do and why. Securities Commission brochure [2004] NZSecCom 7 (1 June 2004)

Last Updated: 9 November 2014

THE SECURITIES COMMISSION

WHAT WE DO AND WHY

SECURITIES COMMISSION NEW ZEALAND
Helping people make better investment decisions

WHAT IS THE SECURITIES COMMISSION?

The Securities Commission is the country’s main investment regulator. Our job is to build confidence in New Zealand’s investment markets.

OUR ROLE

The investments we regulate include shares, debentures, bonds, term deposits, superannuation schemes, unit trusts and other managed investments, contributory mortgages, and futures contracts.

The formal name for these investments is securities – hence our name the Securities Commission. Not all investments are securities, e.g. property and precious metals are not securities and are not regulated by us.

By law investors are entitled to information about an investment before they pay any money. Part of our job is to watch for any promotion of investment opportunities to see that they do give this information. If they don’t we can take them off the market.

We also regulate New Zealand’s securities markets, like the stock exchange, where securities are bought and sold. People who work in these markets must obey the law. We have powers to investigate and censure people who don’t play by the rules.

WHY DO WE NEED A SECURITIES REGULATOR?

Strong securities markets are vital to New Zealand. People who invest in the securities markets provide finance for the industries and businesses that create wealth for this country and its people. In return investors have the opportunity to make money from their investments.

To thrive the markets need to attract investors. This can only happen when investors are confident that the securities markets operate effectively and have integrity. Securities markets should be fair, open, and well regulated.

WHAT DOES THE SECURITIES COMMISSION DO?

In the interests of investors the Commission:

• investigates people who sell illegal investments or scams;
• investigates offer documents and advertisements for investments that might mislead people;
• bans offer documents and advertisements for investments if they are likely to deceive, confuse or mislead people;
• investigates trading on the share market by people who may have "inside information" that is not known to other people;
• encourages good practices in the securities markets;
• reports publicly on bad practices concerning securities;
• authorises trustees and statutory supervisors (who oversee certain investments on behalf of investors);
• authorises futures exchanges and people who deal in futures;
• examines the rules for stock exchanges and advises whether the Minister of Commerce should approve them;
• grants exemptions from securities law to help businesses raise money from the public under conditions that protect investors;
• provides information about securities via its website and publications; and
• recommends changes to improve securities law.

WHO IS THE SECURITIES COMMISSION?

The Commission has a full time Chairman and up to nine part time Members. All Members are appointed by the Governor-General on the recommendation of the Minister of Commerce. Profiles of the current Commission Members can be seen at www.seccom.govt.nz.

WHAT WE DON’T DO

We’re not here to take the risk out of investing. Investing always involves some risk and no regulatory body can change that. People who offer investments are required by law to explain the risks properly so that you, as an investor, can make an informed decision on whether or not to invest in that product.

We don’t give advice on investments. Investors should find out all they can about an investment before they pay any money. They can do this by knowing what information they are entitled to and reading it. They can also talk to a professional adviser.

FOR MORE INFORMATION

See our brochures - Your Right To Know - Get Informed About Investing and Choosing An Investment Adviser. They’re available at www.seccom.govt.nz.

This leaflet is for general guidance only. If you are in doubt or would like definitive information you should seek professional advice.

HOW TO CONTACT THE SECURITIES COMMISSION

Level 8, Unisys House
56 The Terrace
PO Box 1179
Wellington

Fax 64 4 452 8076
Email seccom@seccom.govt.nz
Website www.seccom.govt.nz
2004

This information is also available as a printed brochure from the Securities Commission at no cost.

The Securities Commission is New Zealand’s main investment regulator.
We help build confidence in New Zealand’s securities markets.