Strategic’s Finnigan freelancing after receivership, oversees FAI repa
Kerry Finnigan, the former head of Strategic Finance, will continue to operate as a freelance consultant as the dust in the finance sector settles, and the survivors come through the other side.
Wednesday, March 24th 2010, 9:04PM 
1 Comment
by Paul McBeth
The failed finance company's former chief executive had been reducing his commitment, and salary, over the past six months, and has recently been doing work with his former employers, Mark Hotchin and Eric Watson. His Gartmore Consulting oversaw this week's repayment to investors at FAI Money, and he doubts that company will try to raise money from retail investors again.
"I don't think FAI will try to raise money from the public in the short term," he told depositrates.co.nz.
He also did work for Hanover Finance, which sold its loan book to Allied Farmers last year in a debt-for-equity swap valued at $396 million, though the rural lender had to write-down about $176 million of the loans.
Finnigan was let go by Strategic after the finance company was placed into receivership by trustee Perpetual Trust, and he is unsure what, if anything, will be required of him by receivers John Fisk and Colin McCloy of PricewaterhouseCoopers.
He is confident nothing untoward will come out over Strategic's governance and board, and he was frustrated by the "current round of media beat-up" claiming dodgy related party loans when there weren't any.
"Strategic had a strong board and a good independent chairman" in Denis Thom, he said. "I would be very surprised if anything was found wanting."
Paul is a staff writer for Good Returns based in Wellington.
| « South Canterbury may have to raise more capital | Strategic receivers say no money available for pref shareholders » |
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However, the dust appears to have somewhat settled for the full-on barrage of what appeared to be well-researched media reports for much of last year surrounding a number of other finacial advisery companies.
Namely, one of those who attracted some of the most reporting was Money Managers, headed by Doug Edgar.
All the "dust' appeared to arrive at a head at the end of last year (2009), except for an announcement this week that directors of failed C+M have received charges from the SFO.
Are we now to see those from last year (eg Doug Edgar of the then Money Managers, now renamed MMG Advisery partners)just drift away with no charges?
The parallels of the list of chargeable items are seemingly quite common and include, but are not limited to:
* Poor risk reporting
* Poor trustee overseeing
* Sub-standard prospectus reporting.
* Managerial issues
* related-party lending
* literally hundreds of millions of dollars of investors money gone forever.
and more....
So, are we to read of more, or is it all drifting away, with effectively a bunch of "heads buried in sand?"
Michael Donovan