[Weekly wrap] Hotchin breaks his silence

Hotchin's public statement, which followed the former Hanover directors filing their statements of defence against the FMA proceedings, features some strong words about the regulator and the merits of its case.  This ups the ante in what is already an important case for the FMA, which would be left with egg on its face if its court action failed.

Unlike many of the other finance companies, there have been no criminal charges laid against the Hanover directors.  Some commentators have even pointed the finger at Allied Farmers for its management of the assets after it purchased them in 2009.  Whatever the outcome inside the court, Hotchin is unlikely to see his popularity amongst the general public improve.  But he will feel a strong sense of vindication if he wins the case. 

Meanwhile, the Institute of Financial Advisers has laid out its future plans.  Whenever industries become regulated, the challenge for professional bodies is to remain relevant in an environment where everyone has to meet a certain standard.  When investment advisers are required to be authorised, what can the IFA do to convince these advisers of the benefits of membership?

Another challenge is around the use of designations such as CFP and CLU, which the IFA has the rights to in New Zealand.  These are international designations but do they have any relevance to New Zealand consumers?  And how can the IFA promote them as being a step above what advisers need to do to enter the industry?  These are issues the IFA will no doubt have to deal with, but the success this year's conference, which saw increased numbers, is a positive sign for the organisation.