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Jenny Ruth
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NZF Money heads into receivership owing about $18m

Friday 22nd of July 2011

NZF told the stock exchange the subsidiary's board have "explored various options for a short-term funding solution. After giving the matter considerable thought and taking into consideration developments over the last couple of days, the board of (NZF Money) do not believe that such a short-term solution is in the best interests of (NZF Money) or its investors," the company said.

Accordingly, NZF Money's board has asked its trustee, Covenant Trustee Company, to appoint a receiver.

Yesterday, it was revealed the Financial Markets Authority had forced the withdrawal of NZF Money's prospectus last Monday. Also yesterday, international ratings agency Standard &a Poor's cut NZF Money's rating to "CC" from "CCC-" and warned it was likely to default next week unless NZF money was able to inject new funds into the business.

NZF made no mention of the unnamed Australian private company which is supposed to be taking a majority stake in NZF's home loan division. In June, NZF said this party was in the final stages of due diligence.

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
1 hour ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
3 hours ago Backstage
FMA outlines its latest expectations for advisers
All things said are great aspirational goals for a great financial advice industry, it mirrors what both the legislation and the code requires. However, like most things discussed it talks about what's expected not how it's done. The hardest aspect of financial advice today isn't what it is, it is how it is done. The how only comes from those that have done it, the how is only provided with examples. Guidance documents that spell out what's required along side how it it done. We’re still dealing with the same issues we started with in 2021, figuring out the how. And figuring out the how in every advice business is consuming resources that could easily be shortcut by the FMA demonstrating what they are expecting. It's not about “do it this way” its about this is the sorts of things we’re looking for. In the absence of standards and expectations, guesswork prevails. That represents significant risk to FAPs and the result is onerous overcooked advice processes for multiple advice operations and undercooked she’ll be right for single operators focused on getting the work done. Both approaches have potential for harm and as its been said earlier, leaves advisers open to explain they haven't been speeding with the authorities have pulled them over. The advice industry needs guidance on the how we know the what already.
2 days ago Jon-Paul Hale
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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