About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, November 20th, 6:57AM
rss
Latest Headlines

Commission planning to prosecute finance companies

The Securities Commission says that investigations into collapsed finance companies are progressing well and it is likely that proceedings will be laid against some companies.

Tuesday, May 6th 2008, 11:10PM
"We are assessing whether the information given by the companies to investors before they went into receivership was true and not misleading, and that all material information was disclosed," commission chairman Jane Diplock says.

The Commission is working to establish whether there may be grounds to lay criminal charges or seek civil penalties under the Securities Act.

"It is important that people who raise money from the public are held to account if they mislead their investors. We will take court action if our investigations show this to be in the public interest and in the interests of investors."

The Commission can go to court to seek compensation for affected investors, for prospectuses registered after October 2006. It can also seek civil penalties in some circumstances. These actions can be taken against each director of the company, and any promoter of the offer.

The Commission's litigation fund will be topped up from the $17 million Tranz Rail settlement "providing significant resources to take actions."

Investors can also sue for compensation for loss caused by false or misleading statements.

The Commission is continuing to investigate whether there may be any prospects for compensation if investors' losses can be attributed to misleading statements or omissions in the prospectuses.

Diplock says that the Commission cannot protect people against genuine investment risk.

"However, some of these collapses raise serious questions as to whether directors were giving investors an accurate picture of their financial situation and the risks of investing with them, or even in some cases whether there was fraudulent behaviour."

« S&P upgrades Geneva, but turns negativeBillion dollar booby but finance company sector fights on, RBNZ finds »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 1.75  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    2 days ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    2 days ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    2 days ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    3 days ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    3 days ago by regant
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

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