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Independent report on DYF/RIF funds released; Plan B boss horrified; Securities Commission to double in size for advisers.

Monday, June 8th 2009, 7:17AM

Grant Samuel has provided an independent report on the merits or otherwise of ING's offer to investors in its CDO-backed funds, DYF and RIF.

The report says the offer is "fair and reasonable" and "substantially higher" that the net asset value of the funds. However its analysis does not put a value on the release investors need to sign to accept the revised cash out offer.

Investors can cash out and move to an ANZ cash fund, but have to release ING and advisers from any legal action.

Grant Samuel says "unitholders will need to assess for themselves the value of the release based on their own individual circumstances." [Read summary of report here]

Plan B boss "horrified"
Plan B Wealth Management chief executive John Atkinson is "horrified by the lack of concern about trustworthiness that seems to affect so much of the investment industry" in New Zealand.

"If there was a pedestrian crossing in the middle of Auckland where people were run down every month something would have been done about it by now. But more than 34 finance companies have hit the wall since I've been here and I still don't see any progress."

He says one option is for firms to become certified by the Centre for Fiduciary Excellence (CEFEX), as Plan B has done.

CEFEX is an independent assessment organisation which audits forms to ensure the trustworthiness of investment fiduciaries, he says.

Sec Comm to double in size
Regulation of the financial advisory sector is like to see the Securities Commission double its staff and ask for more money from government.

The commission's staff has doubled since 2002 to 44 and it is expecting to double that number again.

In its statement of intent for 2009-10 the commission forecasts a loss of $1 million.

In the budget it was given an additional $11.8 million over four years.

It has engaged KPMG to review its baseline funding as it evolves to cover the advisory sector.

"The likely doubling of staff numbers, the possible opening of an Auckland office, and the need for computer systems to deal with authorisation and monitoring of financial advisers requires the commission to reshape significantly."

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