News Round Up: September 5

Nathans directors sentenced; FMA welcoming; Super fund, super returns; New anti-money laundering code sets standard for customer ID checks.

Monday, September 5th 2011, 7:34AM

Nathans Finance directors sentenced

Nathans Finance directors Mervyn Doolan and Roger Moses will each serve more than two years in jail and have to pay hefty fines for making misleading statements in prospectuses. [More details]

…and FMA welcoming
The Financial Markets Authority has welcomed the sentencing of Nathans directors saying the courts sent a clear message saying that untrue statements in issuers’ offer documents are a serious breach of the law.
“This case demonstrates that directors have a personal duty to ensure documents and advertisements offering securities to investors do not mislead or deceive. This is not a duty they can delegate to staff or external advisers.”

Super fund; Super returns
The New Zealand Superannuation Fund has unveiled its strongest annual return. In the financial year ended June 30, the fund climbed in value by 25.05%, or $3.41 billion, to just over $19 bill.
In the previous year it reported a 15.45% rise, however two years ago it slumped 22.14%, thanks largely to the global financial crisis.
The fund has 60.6% of money invested in international equities, 11.2% in international fixed income and 5.2% in New Zealand equities.

New anti-money laundering code sets standard for customer ID checks
Customers of financial institutions can expect more stringent identity checks in the lead up to 30 June 2013, when anti-money laundering legislation comes fully into force. Businesses now have access to guidance on the standard those identity checks should meet.
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 places obligations on New Zealand’s financial institutions and casinos to detect and deter money laundering and terrorism financing.
An Identity Verification Code of Practice (http://www.rbnz.govt.nz/aml/4315132.html) Gazetted last week applies to all reporting entities being supervised by the Reserve Bank, the Financial Markets Authority and the Department of Internal Affairs.
The code sets out an acceptable practice for verifying the name and date of birth of customers (people, not corporations) whom the reporting entities have assessed as low to medium risk. The code details acceptable forms of identification, and outlines when secondary or supporting identification is required – for example, a passport on its own, or a New Zealand Driver Licence with an Eftpos card.

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KiwiSaver mismatch a 'huge challenge' for advisers »

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