Prison and large fines proposed for false disclosure statements
The penalties are part of further Cabinet decisions on the review of securities law announced by Commerce Minister Simon Power.
Other measures include a system to regulate securities exchanges and licensing regimes for specific financial sector participants including fund managers, independent trustees of workplace superannuation schemes, derivatives dealers and peer-to-peer lenders.
The penalties announced range from an infringement notice of up to $20,000 for failure to keep registers of security holders, to up to 10 years imprisonment and/or a fine of up to $1 million for individuals and $5 million for companies for known or reckless inclusion of false statements on disclosure documents.
Power said that under the liability regime, the fines could also be directed at celebrities fronting adverts.
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