News Round Up

Consumer starts a fight, Dorchester buys MoneyOnline, Accountant struck off, Trans-Tasman investing to get easier, SuperBank happy.

Sunday, May 23rd 2004, 10:57PM

The Consumers' Institute has launched a scathing criticism of superannuation funds and their level of fees. It says that investors would have been better off leaving their money in the bank, rather than investing in super funds.

The article has provoked a swift reaction from the savings industry with a number of players questioning the research. We'll provide more news on this story later Monday.

Dorchester buys MoneyOnline
Dorchester Pacific has purchased online broker and advisory firm MoneyOnline which is 80% owned by former BNZ adviser John Commins and John Carr.

The company has around 1,500 customers and a combined online and offline marketing base of over 7,000 people. MoneyOnline customers have more than $40 million invested in managed funds and the company also distributes substantial volumes of direct investments in the IPO market.

Dorchester Pacific managing director Brent King said the business is complimentary to Dorchester other advisory companies Direct Broking and Equity Investment Advisers & Sharebrokers.

Dorchester Pacific will issue 104,005 ordinary shares in Dorchester Pacific at $2.80. There is a further undisclosed cash payment.

BT stops court proceedings
BT Funds Management has written to investors in its Australian products saying that it has stopped court proceedings to validate securities possibly affected by the last filing of documents.

It has withdrawn the court application because of a recently passed law relating to this matter. BT is studying the new act “to ascertain the best way forward.”

“BT believes that validation of the securities is the fairest outcome in all circumstances,” BT Financial Group chief executive David Clarke says in a letter to investors. “Validation will mean that investors will be restored to the position they would have been in had BT filed the documents on time.”

Superbank pulling in deposits
Superbank says it is redefining the term deposit market in New Zealand with its "Term Deposit Returns without the Terms" positioning.

Deposits recently passed $150 million and it reckons it will have $250 million by the end of September. For more on term deposits go to www.depositrates.co.nz

Trans-Tasman investing to get easier

A joint discussion paper on the trans-Tasman mutual recognition of offers of securities and managed investment scheme interests was released last week. "The proposed regime will allow issuers to offer securities in both Australia and New Zealand, using the same offer documents and offer structure", Commerce Minister Margaret Wilson says.

"The objective of the proposed regime is to remove unnecessary regulatory barriers to trans-Tasman securities offerings.

Accountant struck off
Christchurch accountant Grant Perry McGowan has been struck off by the Institute of Chartered Accountants after the misuse of $246,000 of clients' funds, The Dominion Post reports.

McGowan, a sole practitioner, pleaded guilty to four charges including misconduct in a professional capacity, conduct unbecoming an accountant, negligence or incompetence, and significant breaches of the code of ethics.

He was ordered to pay costs of $41,738. "He put clients' money in high-risk investments and in investments in which he himself had a financial interest," Tribunal chairman Tony Frankham said.

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