Acts

Securities Commission Act 2015

The Securities Commission Act 2015 establishes the Securities Commission of Papua New Guinea as the principal authority responsible for regulating Papua New Guinea’s capital markets.

The Act provides a framework for the orderly, fair, and transparent offering of securities and derivatives, including activities conducted in over-the-counter markets. It empowers the Commission to license, supervise, and monitor market participants, promote high standards of corporate governance, and protect investors from market abuse.

The Act also supports measures to combat money laundering and related financial crimes, promotes public awareness of investment risks and benefits, and strengthens cooperation with the Bank of Papua New Guinea to safeguard the stability of the national financial system. Through international engagement, the Act further seeks to enhance confidence in Papua New Guinea’s capital markets.

The Securities Commission Act was amended in 2023 to improve the governance, administration, and regulatory framework of SCPNGSCPNG Securities Commission of Papua New Guinea. Key changes included establishing the CEO position and clearly defining roles for the Chairman and Board.

Capital Market Act 2015

The Capital Market Act 2015 provides the principal legal framework for regulating capital markets in Papua New Guinea. The Act governs the public offering of securities and the trading of derivatives, including over-the-counter instruments, to maintain orderly and transparent market conduct and public confidence.

It establishes a licensing regime for market participants, sets disclosure requirements to protect investors, and regulates managed investment schemes and unit trusts. The legislation also prohibits market misconduct, addresses systemic risk, and provides investor protection through the establishment of Compensation and Fidelity Funds.

Central Depositories Act 2015

The Central Depositories Act 2015 establishes a Central Depository system for the secure deposit, holding, and transfer of securities in Papua New Guinea. The Act provides a legal framework for the electronic handling of securities through immobilisation or dematerialisation, allowing transactions to be completed via book-entry records rather than physical certificates.

The legislation supports efficient settlement and registration of securities transactions, promotes orderly and fair market practices, and strengthens investor confidence. It also provides for a Guarantee Fund to protect against settlement defaults and requires robust security and confidentiality measures to safeguard depositor information.

Securities Commission Act 1997

The Securities Commission Act 1997 was repealed together with the Securities Regulation 1997 & Takeovers Code 1998 with the inception of the latest Securities Commission Act 2015 along with the other two sister legislations (CMACMA 2015 Capital Market Act 2015 & CDACDA 2015 Central Depositories Act 2015).

Despite the Act being repealed, some acts taken based on the repealed Act remain effective.