Sec Comm looks to go after finance companies
Securities Commission officials have told MPs to expect substantial action against finance companies following the recent collapses.
Friday, 16 November 2007
by Rob Hosking
Chief executive Jane Diplock told Parliament's commerce select committee yesterday the commission is currently evaluating its legal moves.
The commission was voted just under $3 million for its litigation fund in the Budget, and it also has a boost of more than $2 million in costs awarded from the recent Tranz Rail insider trading case.
"We will probably need to – and we are currently discussing this – have to look at the quantum of our litigation fund." Commission counsel Liam Mason told MPs. "The number of cases coming out of the finance company sector may exceed what we have available for litigation."
The commission may ask the government for extra money to pursue the cases.
Even before the first wave of collapses the commission was sufficiently concerned to write to all finance companies and ask for a disclosure of their current situation.
Diplock also expressed concern about the role of financial advisers in the finance company area.
"We do still have a completely unregulated adviser sector – I believe the legislation will come into effect by the end of this year may have a profound influence on the whole form of investment advice in New Zealand."
Asked by National MP Richard Worth about whether the commission had powers to go after "the middlemen" in the finance company cases Mason said it does not appear the commission does.
"In effect we do not. One of the changes which is going to come into effect by the end of the year will bring investment advisers under more suitable regulation."
Diplock told MPs New Zealand still has some way to go before its financial services sector has sufficient regulatory oversight.
Commenting is closed
Weekly Updates including news and commentary
Today's Best Bank Rates
Today's Top 5 Deposit Rates
Find a Rate
Cash PIE Rates
21 June 2017
6 June 2017
4 May 2017
10 April 2017
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2017. Tarawera Publishing Ltd. All Rights Reserved.