Govt 'enforcers' get helping hand

By ELLEN READ

More money has been given to the Securities Commission, Serious Fraud Office and Accounting Standards Review Board to strengthen the country's regulatory environment.

The Budget has allocated, over four years, $7.735 million to the Securities Commission, $1.099 million to the Accounting Standards Review Board and $1.149 million to the Serious Fraud Office.

Part of the Securities Commission money will be spent on increased staff and professional services, and part of it will establish a litigation reserve fund so the commission can embark on major litigation activity without big delays.

The money will help meet the costs incurred by the power the commission will gain from the Securities Market and Institutions Bill.

Commerce Minister Paul Swain said the bill aimed to boost investor confidence in the economy.

Commission head Jane Diplock, at present overseas, has called for a strong regulatory environment.

The bill will:

* Give the commission teeth to oversee securities markets effectively.

* Create a commission-controlled disclosure regime requiring listed companies to immediately disclose material information to the market.

* Require directors and executives to report share transactions to the Stock Exchange in five trading days.

* Tighten insider trading rules and have the commission enforce them.

* Greatly increase penalties for breaches of securities regulations.

Swain said the Accounting Standards Review Board funding boost would let New Zealand join work on international financial reporting standards to ensure they fitted here.

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