News Round Up: June 11
Interest rate preview; No immediate search for new IFA chief executive. Bankers Association slames FMA levy, but TCA has a different view.
Monday, June 11th 2012, 7:15AM
Reserve Bank governor Alan Bollard will probably keep interest rates on hold this Thursday although financial markets are still pricing in a 20% chance of a rate cut. Read on
IFA CEO search
The Institute of Financial Advisers isn't planning to start an immediate search for a new chief executive following the surprise resignation of current CEO Peter Lee.
President Nigel Tate says the institute will finish its current strategic planning exercise first. Once that is done it will start looking for a replacement.
He says the role maybe different than it is now.
Tate expressed disappointment at losing Lee after just two years in the role, but understands the reasons behind his departure.
Bankers Association slams FMA levies...
The tiered levy structure to fund the Financial Markets Authority (FMA) has come under fire from the New Zealand Bankers' Association (NZBA).
The NZBA said it supported an industry contribution towards the watchdog's costs but disagreed with the way the levy was apportioned across the industry.
It said one of the principles of the levy model is levies be proportional to benefits received, a situation not reflected by the announced structure.
"Banks are well-regulated responsible lenders operating at the top end of the market," said NZBA chief executive Kirk Hope.
"The FMA has an important job to do to crack down on the irresponsible end of the market. The benefits to already responsible participants are not at all evident compared to the costs they are being asked to shoulder."
...While trustee body backs FMA levy levels
The Trustee Corporations Association (TCA) has backed the new tiered Financial Markets Authority (FMA) levy, saying it is set at the correct levels.
The TCA represents the country's corporate trustees which collectively are responsible for supervising more than $170 billion worth of securities, KiwiSaver cash, unit and superannuation trusts, group investment funds and debt securities.
"In our sector, the new Trustee licensing and supervision regime is the regulatory backbone. While it does come at a cost, it's a price worth paying for the added comfort it provides investors," said TCA chairman Clynton Hardy.
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