Wednesday, June 8, 2011

The man on the telly

It looks like our securities law in New Zealand is under review.  The Government is going to release some draft legislation for consultation in August.  Anyone who makes misleading statements in advertising or in a product disclosure statement will be liable for a penalty of up to NZ$1 million, plus compensation.

The legislation is aimed at high-profile “celebrity” New Zealanders who make false or misleading statements on behalf of providers of regulated financial products or services.

Apparently there are people in New Zealand who will invest in whatever the man on the telly suggests.  A former newsreader, a former cricketer, and a former rugby player all endorsed respective finance companies that later failed owing investors millions of dollars.

The devil is going to be in the detail.  What do we mean by “endorsement”?  What do we mean by “false statement”?  I’m really curious to see how we will define “celebrity”.  The definition might even include a 16 year old sheep called Shrek who died this week.  Perhaps this blogger had better make it clear that he has no intention of endorsing finance companies.

Just in case.

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