Market timing enquiry passes deadline
Fund managers could know by the end of the month just what the Securities Commission will be doing – if anything – following its initial inquiry into the issue of market time and late trading.
Monday, March 15th 2004, 11:53PM
by Rob Hosking
The action by authorities on both sides of the Tasman follows reports of both practices in the United States.
The New Zealand Securities Commission sent a questionnaire on the issue to about 30 New Zealand fund managers and assorted other players in the insurance business.
Deadline for responses was on Friday and Securities Commission counsel Liam Mason told Good Returns the resulting documents “come midway up my leg.”
“We’ve had some reasonably substantial material from some companies: others have just more or less said that they don’t carry out those practices.”
Some of those in the second category may face follow up questions, he says.
A report on the responses will go to the commission’s chief executive, Jane Diplock, probably at the end of the month or in early April, he says.
Depending on the content of that, the commission may need to use its inspection powers or hold hearings, he says. “Or it may be that we just make a brief statement saying that there doesn’t seem to be a problem.”
The Australian commission has already stated it does not expect to find the practice occurring in that country.
Locally, the chief executive of the Investment Savings and Insurance Association, Vance Arkinstall, has stated that that nature of the New Zealand industry means the association “is confident that these practices have not occurred in this country.”
“And hopefully, he is absolutely right,” Mason says.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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