About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, February 28th, 9:56AM
rss
Latest Headlines

FMA tipped to crack down on more managers

Milford Asset Management will not be the last fund manager to fall foul of the Financial Markets Authority, one legal expert says.

Wednesday, June 24th 2015, 6:00AM

by Susan Edmunds

Ross Pennington, a partner at Chapman Tripp, said the high level of enforcement activity seen by the regulator over the past month was likely to become the new normal.

As well as the $1.5 million settlement with Milford, two directors of Apple Fields were fined, 23 firms forex firms removed from the FSPR, asset preservation orders were obtained over Arena Capital and a $500,000 compensation payment was secured from Pacific Edge for breaching continuous disclosure provisions of the NZX listing rules.

Pennington said it was a function of the increasingly regulated market, which now has several layers of legislation, many of which were difficult to comply with and required a lot of constant work.

The industry was now dealing with about 20 times the level of regulation than it had previously. He said the FMA had about three times the staff the Securities Commission had at its zenith and many dedicated to enforcement.

As well as the investigations that made headlines, Pennington said there were many more going on in the background that were not reported.

Coming under the FMA’s scrutiny was potentially very damaging to a firm’s reputation, he said. “It’s so hugely damaging when you get a call out of the blue saying ‘we think you’ve stuffed up’… the worst thing is what it does to your brand in direct and indirect ways.”

He said Milford would be suffering significantly as a result of the investigation.

While other countries were used to much more frequent investigations, it was still new to New Zealanders. “There’s been a relatively immature response so far, saying ‘give back your INFINZ awards’… slinging as much dirt as they can.”

Pennington said the FMA had already changed the way it dealt with fund managers before the Milford investigation started.  “Milford drew the short straw of being the first and most prominent result but they cannot and will not be the last.”

A high level of expectations and a low level of practical realism from the FMA would contribute to regulatory hurdles that were very hard for practitioners to jump, he said.

Tags: FMA Milford Asset Management

« People behind FAA review changingSovereign finally confirms intention to sell Select »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 3.95 4.15 4.49
ANZ Special - 3.45 3.65 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.49 3.55 3.89
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
Lender Flt 1yr 2yr 3yr
China Construction Bank Special - 3.19 3.19 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.65 4.80 -
HSBC Premier 5.24 3.54 3.20 3.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.97 4.05 4.39
Kiwibank 5.15 4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Lender Flt 1yr 2yr 3yr
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.39 3.55 3.89
Sovereign 5.30 3.89 4.05 4.39
Sovereign Special - 3.39 3.55 3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
Lender Flt 1yr 2yr 3yr
TSB Bank 6.09 4.19 4.35 4.69
TSB Special 5.29 3.39 3.55 3.89
Wairarapa Building Society 5.50 3.95 4.05 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.55 3.99
Median 5.34 3.96 4.09 4.39

Last updated: 21 February 2020 4:32pm

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