tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

FMA: Investors will be disappointed

FMA chief executive Sean Hughes acknowledges that investors will not be happy at the organisation's decision not to take action against four finance companies.

Monday, September 9th 2013, 11:30AM 4 Comments

FMA announced today it has finished its investigations into four of its remaining finance company cases but will not be taking enforcement action against Allied Nationwide, Equitable Mortgages, LDC Finance or Irongate Property.

It had looked at possible breaches of the Securities Act and identified some evidence of non-compliance. But, taking into account the prospect of success and potential defences, existing returns to investors and public interest considerations, it decided not to take action.

Allied Nationwide's directors were issued with a warning letter, telling them they likely breached the Securities Act and that they should have made better disclosure to investors about the risks associated with their investments.

FMA chief executive Sean Hughes said investors would be disappointed but factors including the best use of public resources had to be weighed up.

"It would not have been appropriate to take proceedings."

He said it was the FMA's expectation that the directors would disclose to the market the positions they held at the time of the collapse. "The directors of these failed finance companies have been reminded of their obligations to comply with all financial markets legislation and we will continue to monitor their conduct within our general surveillance activities."

Hughes said announcements would be made on the five outstanding investigations by the end of the year.

« PAA and IFA disagree on proposed Code changesIFA working on pro-bono offering »

Special Offers

Comments from our readers

On 9 September 2013 at 5:01 pm Independent Observer said:
I'm really not sure what the role of the Regulator (industry policeman) is when I hear "...taking into account the prospect of success and potential defences, existing returns to investors and public interest considerations, it decided not to take action".

This doesn't instill a lot of confidence in the process, when the villians are let off the hook because it's a bit too hard...

I would suggest that there is significant public interest in allowing this to run its course... just ask those who lost their money!
On 10 September 2013 at 9:57 am Kimble said:
Then I assume you will also have little faith in the police, IO. They too take into account prospect of success and potential defences, the real harm suffered by victims and the public interest when they decide whether to charge someone.
On 10 September 2013 at 4:52 pm Independent Observer said:
I know you're probably right Kimble.... but it doesn't make me feel any better...
On 11 September 2013 at 8:19 am FMA Supporter said:
On the balance of probabilities the directors of the afore mentioned finance companies, allowed various offer documents to go into the market containing materially misleading information about core aspects of their business’s and their various financial positions.

It would also be safe to assume the prosecution piggy bank is running on empty and the defendants ain’t got any money for the victims’ settlement fund.

But what irks me the most, is the rat bags have got away with it. We now have a duty to make sure they don’t have a chance to do it again.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com