News Round Up

Commission to explain new disclosure laws, New look ASSET, Investment grade rating given, Bonds to total $50 mill.

Monday, February 5th 2007, 5:37AM

The Securities Commission has set up a website to help people understand changes to securities law which take effect around the middle of 2007.

“Securities market participants and all people who give investment advice to the public will need to comply with the new law,” says General Counsel Liam Mason.

Of particular interest to financial advisers are the law changes relating to disclosure. Under the new laws investment advisers have new disclosure requirements about themselves, their fees and commissions, and the types of investment they give advice on.

“The Commission expects the law to come into force around the middle of this year after regulations are passed,” Mason says. “The regulations will contain some exemptions and further detail of the law.”

Also the commission is preparing a Guide to New Securities Law which will be published when the regulations are finalised.

The law changes arise from the Securities Legislation Bill passed in October 2006. The Bill amends various Acts including the Securities Markets Act 1988 and Securities Act 1978.

Get a bigger ASSET!
There's plenty to look forward to this week including Waitangi Day (and it seems many people are taking Monday off too), and the return of kids to school. But the other thing to watch out for is the arrival of your new look ASSET Magazine.

ASSET is now bigger and even better than before. We have made a number of changes to the magazine which includes the addition of some new features. ASSET, as many of you know, is the only adviser magazine in New Zealand. If you are not a subscriber and would like to see the new-look mag, drop us an email here.

Investment grade rating issued
Standard & Poor's Fund Services has assigned an 'Investment Grade' rating to OM-IP 2Eclipse.

"Similar to the previous Eclipse product, this offering will provide a capital guaranteed investment in the AHL Diversified Program (AHL Program) and the RMF Portfolio, which is an equal split between a commodity-based fund of hedge funds, the RMF Commodity Strategies Portfolio, and an Asian long/short fund of hedge funds, the RMF Asian Opportunities Portfolio," S&P fund analyst Lee Comper says.

"The inclusion of the RMF Portfolio will smooth the volatility of combined returns to investors. The structure of the offer results in an initial 80% exposure to the AHL program and an initial 40% exposure to the RMF Portfolio, placing significant reliance on the AHL program to deliver the bulk of investor returns.

"The combination of funds is expected to produce higher alpha at the cost of additional volatility."

Bonds to total $50 mill
As first reported by Good Returns last week the Government is about to launch a new bond tender which will include infrastructure bonds.

The government says the $50 million raised in infrastructure bonds will be used for new transport infrastructure, including the Transmission Gully project.

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Sovereign takes regulation bull by the horns »

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