News Round Up

More money for Securities Commission, Liontamer fund forced to close early, Trustees remind investors of their role, Protecting student fees. Comment: Time for biffo on tax.

Monday, May 22nd 2006, 5:59AM

The government has given a significant boost to litigation funds of the Securities and Commerce Commisions in last week's Budget.

The funds, used to fight court cases have been increased by $5.8 million and $7.8 million respectively. Commerce Minister Lianne Dalziel says the funding increase means the commissions "can better protect consumers and investors."

She says the Securities Commission Litigation Fund increases by $5.8 million over the next four years boosting the available funds for cases if required to $8.1 million.

Commodities a winner at Liontamer

One of Liontamer's commodities funds has reached an early maturity because it has performed so well.

The COMBI Series 2 has hit the pre-set growth target of $1.40. This means the fund will mature early and investors will receive a 40% gain for a 17-month investment.

Liontamer says it intends to provide another COMBI fund in August and for ease, will be offering clients a cash account to invest into until this is ready.

The Trustee Corporations Association (TCA) reminded people last week about the role it plays in protecting investors. “We want to remind people about the protections afforded to investors by corporate trustees and statutory supervisors," TCA chairman James Douglas said in a press release.

“Investors looking for a higher return need to consider that, in the majority of cases, these investments carry much greater risk; risk of not providing the promised return or risk of total failure and losing the capital invested as well.”

Financial institutions offering debt securities, unit trusts, superannuation funds or participatory securities to the public are legally required to appoint an independent trustee or a statutory supervisor.

“Our members provide independent oversight of all public investment in the securities market other than shares and bank deposits. This oversight or supervision is comprehensive with the corporate trustee required to act as a watchdog, solely in the interests of the investors; not the issuer of the investment,” Douglas went onto say in his release.

The Public Trust’s student fee protection service, Fee Protect, has protected $315 million of student fees since the service’s establishment in 2003. Fee Protect safeguards course fees and other expenses paid in advance to Private Training Establishments (PTEs) by New Zealand and international students.

Comment: Time for biffo on tax changes
It's becoming clear that the government's new bill on taxing investments is going to be a shambles and the outcome is likely to, therefore, be a mess. [Read On]

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