New Securities Law for Investment Advisors and Market Participants
Printed from : www.newsecuritieslaw.govt.nz//overview/enforcement/index..php
24th November 2009

Overview

Enforcement Powers of the Securities Commission

The new law includes extensive public enforcement provisions. The Commission will be able to apply to the Court for various orders, and also has increased powers to intervene to protect investors. The Commission can:

• seek pecuniary penalty orders for serious breaches of the law;
• seek civil remedies and penalties under the Securities Act where offer documents are likely to mislead investors, or for a breach of the disclosure provisions relating to contributory mortgages;
• seek compensation orders for losses suffered by investors;
• seek management banning orders against a person if they:
  • have been convicted of an offence under the Securities Act 1978; or
  • have had a pecuniary penalty order made against them; or
  • as a director have persistently contravened the securities laws, the Companies Act 1993, the Takeovers Act 1993 or the takeovers code;
• seek orders to preserve assets pending an investigation or prosecution; and
• make prohibition orders, corrective orders, and disclosure orders in relation to the market manipulation, general misleading conduct, and disclosure laws, and disclosure and temporary banning orders in respect of investment adviser and broker disclosure laws.

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