The Regulator Report lists recent changes, decisions and developments at the main New Zealand and Australian corporate, commercial and competition regulatory bodies and updates progress of legislation in New Zealand. This edition of the Regulator Report covers the period from 16 December 2009 to 25 January 2010.

The Treasury

Government to carefully consider tax report
The Tax Working Group has released its report (A Tax System for New Zealand's Future) on options for improving New Zealand's tax system. The report identifies a number of issues with the structure, coherence and sustainability of the current tax system, and proposes several options for dealing with them.
Click here to read the press release

Retail Deposit Guarantee Scheme deeds replaced
The Treasury has completed the issue of replacement Crown guarantee deeds to make the Retail Deposit Guarantee Scheme more flexible for deposit taking institutions. All institutions participating in the scheme were asked to either accept the revised deeds or cease offering guaranteed deposits after 31 December 2009.
Click here for further details

Six institutions opt out of the Retail Deposit Guarantee Scheme
Six institutions have elected not to accept replacement deeds for the Retail Deposit Guarantee Scheme. They are: Aotearoa Credit Union, Asset Finance, Christchurch Emergency Services Credit Union, Farmers Mutual Finance, Mutual Credit Finance, and Rockforte Finance. Replacement deeds have been sent to the 63 institutions that continue to participate in the Retail Deposit Guarantee Scheme.  The replacement deeds for those institutions came into effect for new and rolled over deposits on 1 January 2010. In total, the Retail Deposit Guarantee Scheme guarantees $130 billion of deposits.
Click here for further details

Budget Policy Statement 2010
The Treasury has released its Budget Policy Statement 2010 with its Half Year Economic and Fiscal Update 2009 which contains the Treasury's economic and fiscal forecasts.
Click here for further details

The Reserve Bank of New Zealand

Reserve Bank Bulletin
The final edition of the Reserve Bank Bulletin for 2009 was issued in December. This bulletin includes articles on:

• the Reserve Bank's new prudential liquidity policy for banks;
• a comparison of the recent forecasting performance of the Reserve Bank against a range of external forecasters;
• an historical perspective on banking crises in New Zealand; and
• the evolution of New Zealand's trade flows and the approach the Reserve Bank takes to measuring the changes in New Zealand's export and import patterns.

Deposit Takers (Moratorium) Exemption Notice 2009
Entities that have previously issued debt securities to members of the public, but that are now in a moratorium approved by their stockholders and have not yet repaid all of their depositors, are deemed to be deposit takers under section 157C(3) of the Reserve Bank of New Zealand Act 1989 and, therefore, are subject to the credit rating requirements for deposit takers under the Act. Under this notice, which came into force on 18 December 2009 and expires on 1 March 2013, the Reserve Bank has granted an exemption from the requirement to have a credit rating to certain specified moratorium entities (as listed in the schedule to the notice) on the grounds that the additional direct and indirect costs of obtaining a credit rating are unduly onerous and burdensome for the entities. The exemption is subject to a set of generic conditions for all such specified moratorium entities.

Deposit Takers (Credit Ratings) Regulations 2009
Section 157I of the Reserve Bank of New Zealand Act 1989 requires entities that are deposit takers for the purposes of Part 5D of the Act, on and after 1 March 2010, to have a credit rating that complies with requirements prescribed by regulations given by an approved rating agency. These regulations, which came into force on 20 January 2010, require a credit rating for the purposes of section 157I to be a local currency (New Zealand dollar), long-term, issuer rating.

Ministry of Economic Development (MED)

Final report of the CMD Taskforce released: Capital markets matter
In July 2008 an industry-led taskforce (the Capital Market Development Taskforce) was set up by the Labour Government and tasked with producing a blueprint and action plan to develop New Zealand's capital markets. Following on from the CMD Taskforce's interim report (released in November 2008) and its progress report (released in July 2009), the taskforce has now issued its final report, entitled 'Capital Markets Matter'. In the final report, the taskforce explains why capital markets matter for New Zealand, before describing a number of challenges to be addressed. The report contains a package of key recommendations which cover a broad range of factors affecting capital markets including:

• expanding the range of products available to investors and improving the quality of advice they receive;
• increasing access to capital for businesses;
• improvements to securities law (which are likely to be addressed as part of the Government's current review of the Securities Act 1978);
• changes to the structure and operations of finance sector regulatory agencies; and
• addressing tax incentives that cause distortions in the local capital market.

The taskforce has gone to some lengths in its report to stress that its recommendations are designed to "be mutually reinforcing", and, to be effective, the recommendations should not be viewed or developed in isolation from each other. The Minister of Commerce, Simon Power, has indicated that the Government will consider the report as a matter of priority and expects to be able to detail early this year how it will be progressed.
Click here to read Bell Gully commentary on issues raised by the report for the Securities Act review
Click here to read the full media release
Click here to read the final report
Click here to read a summary of the final report

Illegal peer-to-peer file sharing: Cabinet paper recommends replacing section 92A
A cabinet paper released in December recommends replacing section 92A of the Copyright Act 1994 (which was inserted into the Act by section 53 of the Copyright (New Technologies) Amendment Act 2008 but has yet to be brought into force) with new provisions which will provide a process for right holders to pursue repeat online copyright infringers who infringe copyright by downloading material using peer-to-peer (P2P) file sharing technology while also ensuring Internet users have access to due process. There are three main measures to the government's preferred option for P2P copyright infringers:

• First, right holders will be able to issue notices to P2P copyright infringers via ISPs.
• Secondly, if the person continues to infringe (there are three or more infringements), the right holder will be able take a complaint to the Copyright Tribunal who will be able to award a penalty. The tribunal process will be a fast track system which would enable members to make decisions based on the evidence provided by the parties (without a hearing). Hearings would only be required if the alleged P2P copyright infringer sought to defend the allegations in person.
• Thirdly, the court, which already has various powers to deal with copyright infringements, would be given a new civil remedy to make orders suspending the copyright infringers' Internet account.

The proposed timeline set out in the cabinet paper indicates that a Copyright Amendment Bill will be introduced in February 2010, with enactment of the new legislation by July 2010. Public submissions on the proposed legislation will be invited during the select committee process.

Statutory extension for determining input methodologies under Part 4 of the Commerce Act
MED has released a cabinet paper which informs Cabinet of the Minister of Commerce's decision to extend the statutory deadline for the determination of input methodologies by the Commerce Commission under Part 4 of the Commerce Act 1986 from 30 June 2010 to 31 December 2010.

More disclosure for SOEs
Each of the nine largest State Owned Enterprises has introduced a regime (which has been in place since 1 January 2010) that requires greater disclosure. "It's important that the performance of SOEs is transparent, and the introduction of the disclosure regime will go some way towards increasing this," State Owned Enterprises Minister Simon Power said. NZ Railways Corporation, Transpower, Meridian, Mighty River Power, Landcorp, Genesis, NZ Post, Solid Energy and Kordia have begun a regime that requires, subject to certain exemptions, the continuous disclosure of:

• The fundamental terms of material transactions entered into.
• Information that has a material impact on the SOE's commercial value.
• The disclosure regime also requires each SOE to publicly announce certain financial results within 60 days of the end of each half and full financial year.

Click here for the full press release

Securities (Moratorium) Regulations 2009
Debt issuers, including finance companies dealing with moratoria, will face tougher measures from 31 January 2010, says Commerce Minister Simon Power. The new Securities (Moratorium) Regulations 2009 enacted in December relate to moratorium proposals that vary the terms or conditions of an existing debt security by extending the time for payment of the principal amount or any other returns due, or to become due, under that security, or of reducing or cancelling those amounts or returns. The principal effects of the regulations are to:

• prescribe additional material that must be included in a prospectus for a moratorium proposal;
• prescribe the contents of investment statements for a moratorium proposal. Currently, the Securities Act (Renewals and Variations) Exemption Notice 2002 provides exemptions, in the case of variations of securities that extend the time for repayment, from section 37A(1)(a) of the Securities Act 1978, which is the investment statement requirement. As a companion measure to these regulations, the Securities Commission is removing that exemption in so far as it relates to moratorium proposals;
• imply certain terms into trust deeds if a moratorium proposal is made in respect of any debt securities. These confer, among other things, rights as to hold meetings and to appoint a receiver; and
• require periodic disclosure of certain information to security holders of issuers that are in moratorium.

The new terms that are implied into trust deeds, and the new periodic disclosure requirements, apply to all issuers for which a moratorium proposal has been accepted. This includes issuers that went into moratorium before the regulations were made and issuers that make a moratorium proposal before 31 January 2010. Transitional provisions cover the interface to the new rules.
Click here for the press release

Companies Office

Minister looks at company registration process
Commerce Minister Simon Power has asked officials to provide advice to him on whether key aspects of company registration could be strengthened, following concerns recently expressed about New Zealand's company registration process. Mr Power says he has asked officials to report to him on several matters, including whether:

• New Zealand-registered companies should be required to have a New Zealand resident director (consistent with requirements in other jurisdictions, including Australia, Canada, and Singapore).
• Directors should be required to provide date-of-birth information to the Registrar of Companies, to help verify their identity.
• The provision of a tax number should be a requirement for all companies upon registration. About 70% of new companies already take advantage of the service offered by the Companies Office to apply for a tax number on incorporation.
• The Registrar should be able to suspend the registration of companies where there are concerns about the bona fides of people involved or the integrity of information supplied in relation to a company.

Click here for the full press release

Ministry for the Environment

Consultation on ETS allocations
In December, the Government released a consultation document (Development of Industrial Allocation Regulations under the New Zealand Emissions Trading Scheme) which outlines the Government's intended approach to implementing industrial allocation under the NZ ETS. In summary, it:

• sets out the process for awarding allocation under the moderated NZ ETS;
• seeks feedback on a number of technical matters;
• lists industrial activities that might be eligible for an allocation and invites firms that conduct these activities to identify themselves. It also invites firms that perform other activities that may be eligible to receive an allocation to come forward and provide some preliminary data to demonstrate this.

The ETS Moderation Act 2009 delayed the entry of the stationary energy and industrial processes sectors into the NZ ETS by six months to 1 July 2010 to enable the allocation plan for trade-exposed businesses to be finalised prior to the entry date, but officials will be hard-pressed to have a finalised allocation plan in place before 1 July 2010. To mitigate against any unforeseen delays in providing allocation during the first year, the consultation document notes that allocation will be provided back-dated to 1 July 2010 for those found eligible. Submissions on the consultation document close on 12 February 2010.
Click here to read the press release
Click here to read Bell Gully commentary on the latest amendments to NZ ETS

Electricity Commission

Consultation on security of supply assessments
The Electricity Commission has released its annual publication of medium to long-term security of supply assessments for consultation. The consultation paper (Annual Security Assessment 2009) assesses both dry-year energy and peaking capacity, covering the period from 2010 to 2019. Feedback is sought on the assumptions and conclusions of the assessment. Submissions on the paper close on 29 January.
Click here for further details

Reducing the delay for publishing bids and offers
The Electricity Commission is considering a proposal to reduce the delay for publishing bids and offers. Currently the market administrator publishes all final bids and offers for energy, as well as final reserve offers, two weeks after the relevant trading day. The Commission is proposing to reduce the delay for publishing this information from two weeks to one day. This is consistent with one of the recommendations in the Ministerial Review Report published in August 2009. Submissions on the consultation paper close on 5 February 2010.
Click here for further details

Approach to domestic retail contracting arrangements – issues and options discussion
The Electricity Commission has released a consultation paper on the Commission's proposals for the following aspects of its work on domestic retail contracting arrangements:

• a draft set of Reasonable Consumer Expectations for domestic consumers;
• a proposed package for progressing domestic retail contracting arrangements; and
• the initial draft set of contracting guidelines and minimum terms and conditions.

The Commission is seeking stakeholder feedback as input to determining the appropriate next steps in progressing this work. Officials from the Ministry for Economic Development and Ministry of Consumer Affairs have expressed support to the Commission for the principle of moving away from a model contract towards principles and minimum terms and conditions and are keen for momentum to continue on this work. Submissions on the consultation paper close on 19 February 2010.
Click here for further details

Securities Commission

Guide for Qualifying Financial Entities published
The Securities Commission has released the first of its guides to assist the financial adviser industry to prepare for the new regulatory regime. The QFE Adviser Business Statement Guide explains the document required to be prepared by a business applying to the Commission to become a Qualifying Financial Entity (QFE). To become a QFE an entity will have to register online with the Companies Office and formally apply for QFE status.  Applications to become a QFE are expected to open from May this year. However, businesses can start submitting their Adviser Business Statement (this describes the adviser's business and the governance and compliance arrangements that ensure it and its advisers operate professionally) to the Commission for review from February 2010. The Commission will publish a separate guide on the Adviser Business Statement for individual authorised financial advisers early next year, once the Code of Professional Conduct is released.
Click here to read the press release

NZX performance good, but dual delegation inadvisable
The Securities Commission has completed its fourth oversight review of NZX's performance as a registered exchange. The review found that NZX was discharging its obligations according to its conduct rules and the Securities Markets Act 1988. However, the Commission considers that the dual delegation for the supervisory function of NZX to both the Head of Supervision and the NZX CEO is inadvisable, given that the CEO is also responsible for NZX's commercial functions. The review covered the 2008 calendar year, but also discussed some matters which occurred in 2009 relating to NZX's supervision of its markets.
Click here to read the press release
Click here to read the Commission's report

Financial reporting about transparency, not mere compliance
The Securities Commission is urging companies to make transparency the goal of their financial reporting, not mere technical compliance, after the latest round of its monitoring programme showed mistakes continuing to be made in financial reports, despite being highlighted in previous reviews.  In particular, Securities Commission Chief Accountant Alastair Boult has reminded companies preparing financial statements for the year ending 31 December 2009 of the requirement to report according to the new standard on Operating Segments. This standard requires companies to publish information consistent with that reported to their management, so the market has the same perspective.
Click here to read the full press release
Click here to read the Commission's report

SECURITIES ACT EXEMPTION NOTICES

The following Securities Act Exemption Notices have been published for this period:

Securities Act (Directors' Certificates—Collective Investment Schemes) Exemption Notice 2009
This notice, which came into force on 18 December 2009 and expires on 30 September 2011, provides relief to issuers of certain collective investment schemes from the requirement to register a new prospectus in circumstances where the date of allotment of securities is to be more than nine months after the date of the statement of financial position referred to in the prospectus. The notice relates to the certificate that may be registered under section 37A(1A) of the Securities Act 1978 and exempts, subject to conditions, such issuers from section 37A(1A)(c)(i) of that section. One of the conditions of the exemption requires issuers to make available interim financial statements for the specified scheme for a period from the date of the statement of financial position for the scheme referred to in the prospectus on the issuer's internet site.

Securities Act (Renewals and Variations) Exemption Amendment Notice 2009
This notice, which came into force on 18 December 2009, amends the Securities Act (Renewals and Variations) Exemption Notice 2002 (the 2002 class notice). The notice removes any investment statement or registered prospectus exemption in the 2002 class notice in so far as it applies to any moratorium proposal. Currently, the effect of the 2002 class notice is that investors do not need to receive an investment statement or prospectus before agreeing to moratorium proposals in many cases.

Securities Act (Overseas Employee Share Purchase Schemes) Exemption Amendment Notice 2009
This notice, which came into force on 18 December 2009, amends the Securities Act (Overseas Employee Share Purchase Schemes) Exemption Notice 2002 to include Ireland as a specified overseas jurisdiction for overseas issuers for the purposes of that notice.

Securities Act (Gulf Harbour Marina) Exemption Notice 2010
This notice, which came into force on 15 January 2010 and expires on 31 January 2015, exempts Gulf Harbour Investments Limited, Gulf Harbour Marina Limited, and every person acting on their behalf from sections 37 and 37A of the Securities Act 1978 in respect of offers in the form of the reissue of marina berth licences (which are participatory securities for the purposes of the Act) issued under the scheme for the ownership of rights and interests in the marina development known as the Gulf Harbour Marina at Whangaparaoa.

Takeovers Panel

TAKEOVERS CODE EXEMPTION NOTICE

The following Takeovers Code Exemption Notices have been published for this period:

Takeovers Code (L&M Petroleum Limited) Exemption Notice 2009
This notice applies to acts or omissions occurring on or after 30 November 2009 and expires on 30 April 2010. Weaver Holdings International Limited (Weaver), a wholly owned subsidiary of Auriferous Mining Limited (Auriferous), holds 75 000 000 fully paid ordinary shares in L&M Petroleum Limited (L&M Petroleum), a code company. Weaver's holding in L&M Petroleum represents approximately 42.78% of the voting rights in L&M Petroleum. It is proposed that the shares held in L&M Petroleum by Auriferous' subsidiary, Weaver, be transferred to Campania Holding Inc (Campania), Tangent International Limited (Tangent), and Archibald Geoffrey Loudon (Loudon) in proportion to those shareholders' holdings in Auriferous. The transfers will result in Campania, Tangent, and Loudon holding, as associates, more than 20% of the voting rights in L&M Petroleum. The Panel has granted exemptions from rule 6(1) of the Code for Campania, Tangent, and Loudon in respect of any increase in their respective voting control in L&M Petroleum resulting from the transfers by Weaver to each of them of 25,000,000 fully paid ordinary shares in L&M Petroleum on or before 28 February 2010.

Takeovers Code (Cynotech Holdings Limited) Exemption Notice (No 2) 2009
This notice applies to acts or omissions occurring on or after 8 January 2010 and expires on 31 March 2013. Cynotech Securities Group Limited (CSGL) has given notice of its intention to make a full takeover offer for all of the equity securities of Cynotech Holdings Limited (CHL). The Takeovers Panel has exempted CSGL from compliance with rule 6(1) of the Takeovers Code in relation to the conversion, after the offer becomes unconditional, of convertible preference shares and warrants (together, the convertible securities) it acquires under the offer. The Panel has also granted an exemption from rule 35 of the Code to enable certain specified security holders to accept the offer.

Takeovers Code (Just Water International Limited) Exemption Notice (No 3) 2009
This notice applies to acts or omissions occurring on or after 18 December 2009 and expires on 18 December 2014. The Takeovers Panel has granted an exemption from rule 6(1) of the Takeovers Code to any person who is appointed a trustee of any of the following trusts and who, as a result of that appointment, becomes the holder or controller of an increased percentage of voting rights in Just Water International Limited:

• the Falkenstein Onehunga Business School Charitable Trust established by deed of trust dated 29 October 2004;
• the Falkenstein Unitec Business School Charitable Trust established by deed of trust dated 11 November 2004;
• the Falkenstein University of Auckland Business School Charitable Trust established by deed of trust dated 4 March 2005; and
• the Falkenstein AUT Charitable Trust established by deed of trust dated 10 November 2008.

Australian Government

Superannuation and managed investment scheme disclosure
Draft regulations and an example Product Disclosure Statement (PDS) for superannuation and managed investment product disclosure have been released for public comment. Under the proposed regime, PDSs will be limited to six A4 pages of key information presented in a clear and uncomplicated manner. These documents will be supported by more detailed or frequently updated information provided online so that businesses can enjoy greater flexibility without compromising investor protection.
Click here for further details

Government welcomes Johnson Report on Australia as a financial services centre
The Government welcomes the Australian Financial Centre Forum's report on Australia as a financial centre. The Government commissioned the report in September 2008, as part of its commitment to secure Australia's future as a leading financial services centre. The report concludes that Australia has arguably the most efficient and competitive financial sector in the Asia-Pacific region, but that there are opportunities to expand exports and imports of financial services and hence maximise the benefits flowing to the Australian workforce and Australian consumers of financial products.
Click here for the press release

Corporate insolvency law reform package
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, has announced a package of reforms to Australia's corporate insolvency laws. The reform package contains a range of reforms directed at reducing the costs and complexity of insolvency administrations; improving communications with creditors; and reducing the potential for abuse of corporate insolvency law. The reforms will include the adoption of substantially all of the recommendations made by the Corporations and Markets Advisory Committee in its Issues in external administration report. The Government will also amend the Corporations Act to reverse the effect of the High Court's decision in Sons of Gwalia v Margaretic which determined that, in a corporate winding up, certain compensation claims by shareholders against the company were not subordinated below the claims of other creditors. Minister Bowen also released a discussion paper on the operation of Australia's insolvent trading laws in the context of attempts at business rescue outside of external administration. The paper outlines possible options for reform.
Click here for the full press release
Click here for the Insolvent Trading Discussion Paper
Click here for the 2010 Corporate Insolvency Reforms paper 

Australian Securities and Investments Commission (ASIC)

ASIC grants conditional relief to improve access to capital for investors in frozen mortgage funds
ASIC has announced its intention to grant conditional relief for investors in frozen mortgage funds. Under the move, investors will be granted relief from some of the requirements of the withdrawal provisions in the Corporations Act 2001. The relief will enable a responsible entity to implement a ‘rolling' withdrawal offer over a 12-month period. Relief will generally be granted on individual application by responsible entities of frozen mortgage funds.
Click here for further details

ASIC seeks feedback on disclosure requirements for non-standard margin lending facilities
ASIC has released a consultation paper designed to help retail investors better understand the risks involved with non-standard margin lending facilities.
Click here for further details

ASIC releases new best practice proposals for the handling of confidential information and conduct of market soundings
ASIC has released proposed best practice guidelines to help improve market practices relating to the handling of confidential information by listed entities. The consultation paper Handling confidential information and the attached draft regulatory guide, sets out a range of best practice guidelines that will enable companies and their advisers who are in receipt of confidential, price-sensitive information to benchmark themselves, with a view to strengthening their procedures as appropriate to the scale and context of their business. ASIC Commissioner Belinda Gibson said, “It is important that listed companies take responsibility for the proper handling of their confidential information. These guidelines outline the standards of conduct and practices ASIC believes companies should require from their directors and staff, and also from their transactional advisers and other service providers."
Click here for further details

ASIC releases guidance for credit licensees
ASIC has released further regulatory guidance on the implementation of the National Consumer Credit Protection Act. This release is the second package of regulatory guidance on the implementation of the National Consumer Credit regime. The guidance sets out how ASIC will approach the administration of the National Consumer Credit regime. It has been developed to help industry prepare their credit licence applications and also understand ASIC's expectations in relation to their obligations as credit licensees. Click here for further details

New Zealand Commerce Commission (NZCC)

Media releases

The NZCC has issued the following media releases:

Industry regulation and regulatory control

• Commerce Commission releases emerging views on input methodologies
  The NZCC has released papers detailing the NZCC's emerging views on input methodologies for electricity distribution services, gas pipeline services and specified airport services supplied by Auckland, Wellington and Christchurch International Airports.
  Click here for more

Market behaviour

• Confidentiality order investigation closed by Commerce Commission
  The NZCC has closed an investigation into a potential breach of a confidentiality order. The investigation followed the disclosure in the Independent and the National Business Review in August 2009 of details of a confidential commercial interconnection agreement between 2degrees and Vodafone.
  Click here for more

Telecommunications

• Commerce Commission considering final mobile termination undertakings
  The NZCC has released further revised undertakings received in relation to mobile termination access services from Telecom and Vodafone, and correspondence from 2degrees withdrawing all of their earlier undertakings.
  Click here for more

• Commerce Commission's view of Telecom's regulatory financial reporting
  Telecom New Zealand Limited has released its first set of audited regulatory financial statements for the financial year ending 30 June 2009. Under the Telecommunications Act Telecom must publish financial and other information about its retail, wholesale and network business activities.
  Click here for more

• Draft guidance on Telecom's non-discrimination obligations released for consultation
  The NZCC has released a paper which sets out the NZCC's draft guidance on Telecom Corporation of New Zealand Limited's non-discrimination obligations under the Telecom Separation Undertakings. The NZCC is seeking submissions from Telecom and other interested parties.
  Click here for more

Consumer issues

• Flight Centre warned over advertising and promotion
  The NZCC has warned travel agency Flight Centre New Zealand that some of its advertising and promotions of travel deals risk breaching the Fair Trading Act. The NZCC has issued warnings in relation to its advertising between May and September 2009.
  Click here for more

• Telecom admits breaching Fair Trading Act - pays back $9.5m to customers
  In a settlement with the NZCC, Telecom New Zealand Limited and Xtra Limited, Telecom has admitted breaching the Fair Trading Act by misleading more than 130,000 broadband customers.
  Click here for more

• Commerce Commission watching retailers' credit card surcharges
  The NZCC is taking a close interest in the surcharges some retailers have introduced for consumers paying by credit card and will continue to monitor developments. The surcharges have come about following changes introduced by Visa and MasterCard and the major trading banks, after the NZCC investigated anti-competitive arrangements between them over the fees the banks charged to retailers for credit card transactions.
  Click here for more

• Insurance company to refund consumers over partial payments
  A company which provides payment protection insurance has admitted a possible breach of the Fair Trading Act and will pay affected consumers about $37,000 in an out-of-court settlement with the NZCC. Beneficial Insurance Limited sold a credit contract indemnity policy to provide cover for motor vehicle and personal loan payments in events such as redundancy, sickness or injury.
  Click here for more

• Refund process for text to win competitions
  A company that ran a series of text to win trivia competitions is offering refunds to consumers who participated in the competitions. From July 2006 to January 2007 TMG Asia Pacific promoted and operated a series of 14 text trivia competitions in New Zealand.
  Click here for more

Australian Competition and Consumer Commission (ACCC)

ACCC media releases

The ACCC has issued the following media releases:

Mergers and acquisitions

• ACCC to oppose the acquisition of Breville by Sunbeam
  The ACCC has announced that it will oppose the proposed acquisition of Breville Group Limited by GUD Holdings Limited.
  Click here for more

Market behaviour

• More furniture removalists to collectively negotiate with Pacific National
  The ACCC will not object to a collective bargaining notification lodged by a group of furniture removal companies seeking to collectively negotiate with Pacific National.
  Click here for more

• ACCC reapproves membership rules for Consumer Electronic Clearing System
  The ACCC has reauthorised certain regulations governing the operation of the Consumer Electronic Clearing System managed by the Australian Payments Clearing Association.
  Click here for more

Telecommunications

• ACCC commences review of Telstra's retail price control arrangements
  The ACCC has begun a review of the retail price control arrangements that apply to Telstra. The review is being conducted under a direction made by the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy.
  Click here for more

Access

• ACCC issues draft advice on water trading rules
  The ACCC has issued its draft advice to the Murray-Darling Basin Authority (MDBA) on the development of water trading rules. The ACCC is inviting submissions from interested stakeholders.
  Click here for more

• ACCC examining proposed pricing for air traffic control services at Avalon airport
  The ACCC has extended the period for examining Airservices Australia's proposed price for a terminal navigation service at Avalon airport to 28 January 2010. The extension will allow proper consultation with affected parties such as airlines and airport owners on the price that would apply to aircraft landing at Avalon aerodrome.
  Click here for more

Consumer issues

• Undertakings remedy Mercy Ministries misleading conduct
  The ACCC has obtained court enforceable undertakings, which includes payment, from seven former directors of Mercy Ministries Incorporated and/or Mercy Ministries Limited in relation to misrepresentations by those entities.
  Click here for more

• Court finds Wilson's security business misled WA customers
  Following ACCC action, the Federal Court in Perth has declared that Wilson Parking Australia 1992 Pty Ltd misled hundreds of its Western Australian customers over the number of contracted mobile security patrol inspections it had provided.
  Click here for more

• Testing clears Go Go Guinea Pigs: ACCC
  Testing has cleared Go Go Guinea Pigs, a popular children's toy. "The samples were tested for levels of antimony, arsenic, barium, cadmium, chromium, lead, mercury and selenium. All of the samples tested were found to be well below the level specified in the standard for all of the elements" ACCC Deputy Chairman Peter Kell said.
  Click here for more

• ACCC issues report on unleaded petrol prices
  The ACCC has issued its second report on the prices, costs and profits of unleaded petrol in Australia. "2008/09 has been the most volatile year on record in petrol pricing" ACCC commissioner Joe Dimasi said.
  Click here for more

• Federal Court declares StoresOnline breached undertaking to ACCC
  Following proceedings instituted by the ACCC, the Federal Court has found that e-commerce marketing companies StoresOnline International, Inc. and StoresOnline, Inc. failed to comply with undertakings provided to the ACCC in April 2006.
  Click here for more

• ACCC moves to protect Australian businesses from Spanish-based directory listing company
  The ACCC has instituted proceedings in the Federal Court, Sydney against a Spanish-based directory listing company, European City Guide S L, trading as Industry and Commerce. The ACCC has alleged that between 2006 and 2009, Industry and Commerce engaged in misleading or deceptive conduct and made false or misleading representations, in breach of sections 52 and 53 of the Trade Practices Act 1974.
  Click here for more

• ACCC moves on more retailers for misleading two-price advertising
  The ACCC has accepted court enforceable undertakings from two retailers of window blinds and awnings, Image Blinds and Premier Blinds & Awnings, over misleading 'discount' advertising promotion.
  Click here for more

• Court declares dealer in Aboriginal art misled consumers
  The Federal Court in Adelaide has declared that Australian Dreamtime Creations Pty Ltd, which deals in Aboriginal art, misled consumers by representing that certain art that it promoted and sold was by an artist of Aboriginal descent named "Ubanoo Brown" when this was not the case.
  Click here for more

• Teething toy recalled
  David Jones Limited, Target Australia Pty Ltd and Little Smiles Pty Ltd have conducted voluntary recalls of Infantino Clack & Teethe toys, after the ACCC identified potential choking hazards in the toys it tested.
  Click here for more

• ACCC institutes proceedings against Panasonic
  The ACCC has instituted proceedings in the Federal Court of Australia against Panasonic Australia Pty Ltd alleging that it engaged in misleading or deceptive conduct in offering bonus Nintendo Wiis with the purchase of Plasma televisions.
  Click here for more

• Avis changes website advertising
  WTH Pty Ltd, trading as Avis Australia, has made changes to its website advertising to ensure that all mandatory fees and charges are included in quoted prices. Between 25 May 2009 and 30 October 2009, the reservation pages on the Avis website did not show or include mandatory fees and charges relating to the optional extras that would be added to the customer's bill when picking up the vehicle.
  Click here for more

• Motorists warned of petrol price volatility
  The ACCC warned motorists that petrol prices may become higher. Commissioner Joe Dimasi said Singapore Mogas petrol prices and movements in the Australian/US dollar exchange rate are very important in influencing domestic petrol prices.
  Click here for more

• Court finds scratch card promotion misleading
  The Federal Court has found that Clarion Marketing Australia Pty Ltd engaged in misleading and deceptive conduct with regards to its scratch card promotion. “The scratch cards appeared to be a game of chance but were really a ploy to trick consumers into signing up for a mobile premium subscription service costing $10 per week" ACCC Chairman Graeme Samuel said.
  Click here for more

• ACCC institutes proceedings against franchisor Mailpost and director
  The ACCC has instituted legal proceedings in the Federal Court in Sydney against Mailpost Australia Limited, its director Mr Peter Kritas, and Mailpost Postie Network Sydney Pty Ltd (MPNS). The ACCC alleges that Mailpost Australia and MPNS failed to comply with the Franchising Code of Conduct in a number of respects.
  Click here for more

• ACCC institutes proceedings against Prime Carbon Pty Ltd
  The ACCC has commenced legal proceedings in the Federal Court against Prime Carbon Pty Ltd. The ACCC is alleging that Prime Carbon made false or misleading representations about the National Environment Registry (NER) and the National Stock Exchange of Australia Limited.
  Click here for more

• Former GreenPower retailer to purchase outstanding certificates
  As part of court enforceable undertakings Global Green Plan Ltd will purchase more than 4000 renewable energy certificates which it failed to buy on behalf of customers in 2007 and 2008.
  Click here for more

• Vodafone Hutchison fixes faulty handset policy
  The ACCC has accepted court enforceable undertakings from Vodafone Hutchison Australia as a result of an investigation into alleged misrepresentations about consumers' rights to a remedy for faulty mobile phones.
  Click here for more

Legislation round-up

The following is an overview of the status of all legislation promulgated during the period from 16 December 2009 to 25 January 2010 or currently before Parliament.

If you require any further information or advice on any of the legislation listed below, or would like our assistance with making a submission to a select committee on any bill, please contact your usual Bell Gully adviser.

New Acts

Act	Date Act is in force
Cluster Munitions (Prohibition) Act	17 December 2009
Education (Polytechnics) Amendment Act 2009	17 December 2009
Legal Services Amendment Act	17 December 2009
Methodist Church of New Zealand Trusts Act	17 December 2009
Subordinate Legislation (Confirmation and Validation) Act	17 December 2009

New Regulations

Regulation	Date regulation is in force
Building Amendment Act 2009 Commencement Order 2009	Sections 5, 6, 7(1), 8, 9, 15 to 17, 19, 25, and 27 to 29 of the Building Amendment Act 2009 come into force on 1 February 2010.
Building (Minor Variations) Regulations 2009	1 February 2010
Building (National Multiple-use Approval) Regulations 2009	1 February 2010
Building Practitioners (Licensing Fees and Levy) Regulations 2009	15 February 2010
Court of Appeal (Access to Court Documents) Rules 2009	1 February 2010
Court of Appeal Fees Amendment Regulations 2009	1 February 2010
Customs and Excise (Specified AANZFTA Parties) Amendment Order 2009)	1 January 2010
Deposit Takers (Credit Ratings) Regulations 2009	20 January 2010
Deposit Takers (Moratorium) Exemption Notice 2009	18 December 2009
Health Practitioners Competence Assurance (Restricted Activities) Amendment Order 2009	15 January 2010
Judicial Salaries and Allowances Determination 2009	1 October 2009
Land Transport (Breath Tests) Notice 2009	3 February 2010
Land Transport (Certificates of Compliance for Evidential Breath-Testing Device (Alcosensor II)) Revocation Notice 2009	3 February 2010
Land Transport (Certificates of Compliance for Evidential Breath-Testing Device (Dräger 9510NZ)) Notice 2009	3 February 2010
Land Transport (Certificates of Compliance for Evidential Breath-Testing Device (Intoxilyzer 5000)) Amendment Notice 2009	3 February 2010
Land Transport (Certificates of Compliance for Evidential Breath-Testing Device (Seres)) Amendment Notice 2009	3 February 2010
Land Transport (Offences and Penalties) Amendment Regulations (No 2) 2009	17 December 2009
Local Government (Infringement Fees for Offences: Queenstown Lakes District Council (Shotover River) Bylaws 2009) Regulations 2009	18 December 2009
Local Government (Infringement Fees for Offences: Queenstown Lakes District Navigation Safety Bylaws 2009) Regulations 2009	18 December 2009
Local Government (Infringement Fees for Offences: Southland Regional Council Navigation Safety Bylaws 2009) Regulations 2009	18 December 2009
Local Government (Infringement Fees for Offences: Waikato Regional Council Navigation Safety Bylaw) Amendment Regulations 2009	18 December 2009
Local Government (Infringement Fees for Offences: Wellington Regional Navigation and Safety Bylaws) Amendment Regulations 2009	18 December 2009
Local Government (Prescribed Form for Seizure of Property Not on Private Land) Regulations 2009	14 January 2010
Major Events Management (U19 Cricket World Cup 2010) Order 2009	15 January 2010
Major Events Management (World Rowing Championships 2010) Order 2009	18 January 2010
Ombudsman Act (Schedule 1) Order (No 2) 2009	14 January 2010
Parliamentary Service (Additional Parliamentary Precinct) Resolution 2009	15 December 2009
Public Finance (Crown Fibre Holdings Limited) Order 2009	14 January 2010
Resource Management (National Environmental Standards for Electricity Transmission Activities) Regulations 2009	14 January 2010
Securities Act (Directors' Certificates – Collective Investment Schemes) Exemption Notice 2009	18 December 2009
Securities Act (Gulf Harbour Marina) Exemption Notice 2010	15 January 2010
Securities Act (Overseas Employee Share Purchase Schemes) Exemption Amendment Notice 2009	18 December 2009
Securities Act (Renewals and Variations) Exemption Amendment Notice 2009)	18 December 2009
Securities (Moratorium) Regulations 2009	31 January 2010
Social Security (Income and Cash Assets Exemptions – EVSA (Neville Wallace Memorial) Children's & Grandchildren's Trust Payments) Regulations 2009	1 January 2010
Social Security (Income and Cash Assets Exemptions – Payments to Victims of Crime) Regulations 2009	1 January 2010
Social Security (Long-term Residential Care) Amendment Regulations (No 4) 2009	1 January 2010
Social Security (Temporary Additional Support) Amendment Regulations (No 2) 2009	1 January 2010
Takeovers Code (Cynotech Holdings Limited) Exemptions Notice (No 2) 2009	This notice applies to acts or omissions occurring on or after 8 January 2010
Takeovers Code (Just Water International Limited) Exemption Notice (No 3) 2009	This notice applies to acts or omissions occurring on or after 18 December 2009
Takeovers Code (L & M Petroleum Limited) Exemption Notice 2009	This notice applies to acts or omissions occurring on or after 30 November 2009
Tariff (Specified AANZFTA Parties) Amendment Order 2009	1 January 2010

New Bills

Bill	Date of introduction	Type of bill
Resource Management (Requiring Authorities) Amendment Bill	16 December 2009	Member's

Bills sent to select committees

Bill	Select Committee
Electricity Industry Bill	Finance and Expenditure Committee

Bills open for submissions

Bill	Select Committee	Closing date for submissions	Report due date
Education (Freedom of Association) Amendment Bill	Education and Science	31 March 2010	28 May 2010
Electricity Industry Bill	Finance and Expenditure Committee	26 February 2010	15 June 2010
Fair Trading (Soliciting on Behalf of Charities) Amendment Bill	Commerce Committee	19 March 2010	9 June 2010
Human Assisted Reproductive Technology (Storage) Amendment Bill	Health Committee	19 February 2010	8 June 2010
Insurance (Prudential Supervision) Bill	Finance and Expenditure Committee	10 February 2010	8 June 2010
Local Government (Auckland Law Reform) Bill	Auckland Governance Legislation Committee	12 February 2010	4 May 2010
Statutes Amendment Bill	Government Administration Committee	11 February 2010	1 April 2010
Taxation (Annual Rates, Trans-Tasman Savings Portability, Kiwisaver, and Remedial Matters) Bill	Finance and Expenditure Committee	10 February 2010	8 June 2010

Bills waiting on report back from select committees

Bill	Select Committee	Report due
Arms Amendment Bill (No 3)	Law and Order	26 February 2010
Dairy Industry Restructuring (Raw Milk Pricing Methods) Bill	Primary Production	2 March 2010
Education (Freedom of Association) Amendment Bill	Education and Science	28 May 2010
Electoral (Administration) Amendment Bill	Justice and Electoral	27 April 2010
Electricity Industry Bill	Finance and Expenditure Committee	15 June 2010
Fair Trading (Soliciting on Behalf of Charities) Amendment Bill	Commerce Committee	9 June 2010
Franklin District Council (Contribution to Funding of Museums) Amendment Bill	Local Government and Environment	30 April 2010
Human Assisted Reproductive Technology (Storage) Amendment Bill	Health	8 June 2010
Injury Prevention, Rehabilitation, and Compensation Amendment Bill	Transport and Industrial Relations	12 February 2010
Insurance (Prudential Supervision) Bill	Finance and Expenditure	8 June 2010
Land Transport (Driver Licensing) Amendment Bill	Transport and Industrial Relations	30 June 2010
Limitation Bill	Justice and Electoral	2 April 2010
Local Government (Auckland Law Reform) Bill	Auckland Governance Legislation Committee	4 May 2010
Marine Reserves Bill	Local Government and Environment	30 December 2010
Marine Reserves (Consultation with Stakeholders) Amendment Bill	Local Government and Environment	30 December 2010
Motor Vehicle Sales Amendment Bill	Commerce	30 December 2009
Ngati Apa (North Island) Claims Settlement Bill	Maori Affairs	17 March 2010
Patents Bill	Commerce	30 March 2010
Private Security Personnel and Private Investigators Bill	Justice and Electoral	30 March 2010
Public Works (Offer Back of and Compensation for Acquired Land) Amendment Bill.	Local Government and Environment	17 June 2010
Sale and Supply of Liquor and Liquor Enforcement Bill	Justice and Electoral	30 June 2010
Sale of Liquor (Objections to Applications) Amendment Bill	Social Services	30 June 2010
Search and Surveillance Bill	Justice and Electoral	1 May 2010
Sentencing and Parole Reform Bill	Law and Order	30 March 2010
Statutes Amendment Bill	Government Administration	1 April 2010
Sustainable Biofuel Bill	Local Government and Environment	29 July 2010
Taxation (Annual Rates, Trans-Tasman Savings Portability, Kiwisaver, and Remedial Matters) Bill	Finance and Expenditure	8 June 2010
Waikato-Tainui Raupatu Claims (Waikato River) Settlement Bill	Māori Affairs	30 June 2010
Whanganui Iwi (Wanganui (Kaitoke) Prison and Northern Part of Wanganui Forest) On-account Settlement Bill	Maori Affairs	19 March 2010

Bills waiting for second and/or third readings

Bill	Links to select committee reports/SOPs
Antarctica (Environmental Protection: Liability Annex) Amendment Bill	Report of the Foreign Affairs, Defence and Trade Committee
Aquaculture Legislation Amendment Bill (No 2)	Report of the Primary Production Committee
Carter Observatory Act Repeal Bill	Report of Education and Science Committee
Children, Young Persons and Their Families Amendment Bill (No 6)	Report of the Social Services Committee
Children, Young Persons, and Their Families (Youth Courts Jurisdiction and Orders) Amendment Bill	Report of the Social Services Committee
Cultural Property (Protection in Armed Conflict) Bill	Report of the Government Administration Committee SOP 38
Dog Control Amendment Bill (No 2)	Report of the Local Government and Environment Committee
Electricity (Continuance of Supply) Amendment Bill	Report of the Commerce Committee
Gambling Amendment Bill (No 2)	Report of the Government Administration Committee SOP 23 SOP 65 SOP 84
Infrastructure Bill	Report of the Transport and Industrial Relations Committee
Inquiries Bill	Report of the Government Administration Committee
Judicial Matters Bill	Report of the Justice and Electoral Committee
Maori Commercial Aquaculture Claims Settlement (Regional Agreements) Amendment Bill	Report of the Maori Affairs Committee
Oaths Modernisation Bill	Report of the Government Administration Committee SOP No.103
Privacy (Cross-border Information) Amendment Bill	Report of the Justice and Electoral Committee
Public Health Bill	Report of the Health Committee
Radio New Zealand Amendment Bill	Report of the Commerce Committee
Rail Network Bill	Report of the Government Administration Committee
Regulatory Improvement Bill	Report of the Commerce Committee
Regulatory Responsibility Bill	Report of the Commerce Committee
Reserves and Other Lands Disposal Bill	Report of the Primary Production Committee
Residential Tenancies Amendment Bill	Report of the Social Services Committee
Student Loan Scheme (Exemptions and Miscellaneous Provisions) Amendment Bill	Report of the Education and Science Committee
Therapeutic Products and Medicines Bill	Report of the Government Administration Committee
Trade Marks (International Treaties and Enforcement) Amendment Bill	Report of the Foreign Affairs, Defence and Trade Committee SOP 83 SOP 85
Trade (Safeguard Measures) Bill	Report of the Foreign Affairs, Defence and Trade Committee
Trustee Amendment Bill	Report of the Justice and Electoral Committee
Unit Titles Bill	Report of the Social Services Committee
Waka Umanga (Māori Corporations) Bill	Report of the Māori Affairs Committee