Capital markets regulation was substantially amended and strengthened under new legislation that came into force in time for 2018. The PNG Capital Markets Act 2015 commenced operation on 15 December 2017. The Act requires any person in the business of dealing in securities, trading in derivatives, funds management, provision of corporate finance or investment advice, or financial planning to hold a capital market licence (limited exceptions apply to entities already licensed under the Banks & Financial Institutions Act 2000, and for activities incidental to the professional practice of people such as accountants, valuers and receivers). Capital markets businesses now have considerable compliance obligations relating to maintenance of registers of interest in securities, recommendations to clients, giving priority to client orders, holding client funds separate from other funds, and annual audits.

Read our Changes to PNG capital markets landscape.

Savings and Loan Societies Act 2015: Replacing the old Savings and Loan Societies Act (Chapter 141), among other things the new Act introduces a new method of incorporation and licensing of savings and loan societies. It moves away from the incorporation and regulation of savings and loan societies by the Bank of PNG (BPNG) or the Governor of the BPNG and instead provides for the incorporation under the Companies Act of entities intending to carry on business as Savings and Loan societies and provides for a licensing scheme to be administered by the BPNG. Pursuant to section 59 of the new Act, Savings and Loan Societies that intend to continue in operation have one year from the date of commencement of the Act to incorporate a new company and apply to the BPNG for a licence under the Act. If not, from 24 August 2019 all savings and loan societies not registered under the new Act will be wound up.

The Independent Consumer and Competition Commission (Amendment) Act 2018 requires any person proposing to acquire the assets of a business or shares to give the ICCC notice seeking clearance under Section 81(1) for the acquisition if: the transaction value of the proposed acquisition exceeds the value of K50,000,000; or the proposed acquisition is likely to or would likely result in a market share increase of 50% or more of the person who is acquiring. Under a new Section 81(3) (c), the ICCC may also direct the proposed Purchaser to give notice of the acquisition under Section 82(1) of the ICCC Act, where the ICCC reasonably believes the proposed acquisition requires a notice seeking authorization.

Infrastructure framework: The PNG Government passed the Public Private Partnership Act 2014 (PPP Act) to establish a formal framework within which private industry may partner with the Government to develop much-needed infrastructure within PNG. The Act's commencement paves the way for the establishment of the PPP Centre, a statutory agency that will be established to implement the PPP Act and monitor its use, along with arrangements under the PNG Government's National Public Private Partnership Policy. These developments are anticipated to eventually result in a number of infrastructure projects being offered by the PNG Government to private investors to undertake.

Read our New formal framework to help develop infrastructure within PNG.

Telecommunications infrastructure: Concluding intense competition between Australia, China, and the US, it was Australia that, in June, signed the contract to build an undersea, high-speed telecommunications cable for PNG that will run between the two nations. The Coral Sea Cable System will be delivered and majority-funded by Australia, with a financial contribution from PNG. Australian telco Vocus will be the construction manager.

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Expiry of term of PNG Chief Justice: The 10-year term of the Chief Justice of Papua New Guinea, Sir Salamo Injia, Kt, GCL, expired on 31 October 2018. Sir Gibbs Salika has been appointed as the acting Chief Justice, until further notice.

The PNG Government is proposing amendments to the Mining Act 1992 that could have very significant impacts on mining operations in PNG. The proposed amendments would, among other things: reduce the term of an existing mining lease from 40 years to 25 years; give the State of PNG a right to either increase its participating equity interest in a project or purchase it outright after 25 years of operations; and limit the compensation payable for this increased interest or outright acquisition to 50% of the sunk costs of the tenement holder for no more than 20 years, multiplied by the percentage of increase in equity acquired by the State.

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An earthquake struck in the early hours of 26 February 2018, measuring, according to the US Geological Society, 7.6 on the Richter scale. It occurred 89km SSW of Porgera, PNG, at a depth of 35km. Damage sustained during and after the earthquake affected Ok Tedi Mine, the PNG LNG project, and the Porgera Gold Mine. Oil Search, Exxon and the PNG Government were swift to respond to the disaster. However, ongoing support is still needed for local communities affected by the quake.

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The Superannuation (General Provisions) Act 2013 contains the provisions for the making of voluntary contributions, restrictions on the appointment of investment managers by an authorised superannuation fund, and excludes the requirement for mandatory contributions to be made for or on behalf of non-citizen employees. While the Amendment serves to repeal the mandatory contribution provisions applicable to non-citizens under the Superannuation (General Provisions) Act 2002, non-citizen employees will still be counted in employee numbers when determining whether or not an employer must contribute to an authorised superannuation fund.