News Round Up January 30

Bollard confirms departure; More guidelines from FMA; Study tour opportunity.

Monday, January 30th 2012, 8:28AM

Reserve Bank Governor Alan Bollard today announced he will not be seeking another term as governor when his current term ends on September 25.

Bollard said that he will be fully focused in his remaining eight months on the serious economic and financial challenges facing New Zealand.

"As I noted last week, the bank is ready to respond to ongoing developments overseas, especially in Europe, the US and China, as well as domestically, particularly the Canterbury earthquakes. In addition, the bank's expanded prudential regulatory responsibilities mean we will continue to introduce new prudential requirements this year, especially in the insurance and non-bank sectors."

The bank's board plans to search in New Zealand and abroad to identify a successor to Bollard. The governor is appointed by the Minister of Finance on the recommendation of the board.

Bollard was appointed to the role in September 2002 and is in his second five-year term.

FMA issues more papers

The Financial Markets Authority today published draft guidance for securities issuers, directors and their advisers on how to prepare and present effective prospectuses and investment statements.

Chief executive Sean Hughes said FMA welcomed comments and suggestions from interested parties before the guidance is finalised.

"Effective disclosure is one of the fundamentals of fair, efficient and transparent financial markets. It enhances investor confidence and drives participation in capital markets, which in turn contributes to a more robust economy.

"In issuing guidance the aim is to ensure that financial markets participants clearly understand their responsibilities, and that investors have what they need to make informed decisions.

"Prospectuses and investment statements need to be concise, effective, and contain clear information. Disclosure documents should give equal prominence to both risk and return, and avoid undue promotion of what we would call 'headline returns'. To that end, the standards set out in the guidance note are designed to improve investors' ability to read and understand the offer"

Study tour of China

Premium Funds Management is organising a study tour of China for financial advisers. The tour is an "immersive experience" which aims to give participants a deeper understanding of the strong interconnections between Chines culture, its people and the economy.

It will be hosted in Beijing and Shanghai. Each stage will blend company visits and tourist attractions to balance out the day. There will also be an opportunity to meet with the fund managers of the Premium China Fund, Value Partners, as well as to hear direct from company executives.

To register your interest contact info@premiumchinafunds.com.au.

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