Regulators tight-lipped on funds enquiry
Regulators are remaining tight lipped over any follow up to the Consumer Magazine’s high-profile criticisms of the financial services industry last month.
Friday, July 2nd 2004, 6:29AM
by Rob Hosking
Both commissions are in “watch this space” mode.
Commerce Commission spokeswoman Gail Kernohan told Good Returns that the commission is still considering its next move, if indeed there is one.
“We can’t say any more at this stage.”
It is understood though that the commission’s director of Fair Trading, Deborah Battell, was in meetings on Tuesday discussing the issue.
And Securities Commission spokeswoman Catherine Chapman confirmed the commission is taking an interest in the issues raised by Consumer but would not say any more.
The Consumers Institute is focussing on the industry at present, with at least two further features scheduled over coming months.
The magazine’s first article was heavily criticised by the industry for focussing on a 10 year period which included three years of the worst international bear market since the 1930s, and Fundsource - which supplied the figures on which much of Consumer’s story was based - has stated the sample size is too small to draw the sorts of conclusions the institute has about the industry.
Fundsource’s executive chairman David van Schaardenburg says Consumer’s conclusions are based on backward looking data and that “any professional independent financial adviser should have access to research which dwarves Consumer’s efforts.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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