Janes' ACC appointment not tainted by Capital + Merchant failure

Trevor Janes
Paula Rebstock

Former Capital + Merchant Finance director Trevor Janes passed the smell-test on his appointment to head the Accident Compensation Corp board's investment committee after officials had a look at it.

In response to questions from Labour Party MP Phil Twyford, ACC chairwoman Paula Rebstock told parliament's transport and industrial relations committee that officials undertook due diligence into Mr Janes' role at Capital + Merchant and the Financial Markets Authority's investigation into the failed lender.

"It is something that was investigated prior to him coming on the board," Ms Rebstock said. "I have been given assurances about the appropriateness of having Mr Janes chair that committee."

Mr Janes was appointed deputy chairman of ACC last year in a boardroom sweep-out of the state-owned insurer after major privacy breaches undermined ACC Minister Judith Collins' confidence in the board.

He heads the investment committee, which sets the risk tolerance and guidelines, reviews ACC's investment portfolio and controls the investment framework for its funds.

He left Capital + Merchant in 2006, a year before the lender collapsed in 2007 owing some $167.1 million to about 7,500 investors.

Three other Capital + Merchant directors have since been subject to successful fraud prosecutions and three have pleaded guilty to making untrue statements in an offer document.

Committee chairman and National Party MP David Bennett slowed down the questioning process, saying "sensitive issues like that, we just need to take a bit of time".

Mr Twyford queried Mr Janes' role heading the investment committee after Ms Rebstock had earlier paid tribute to ACC's investment team, saying its performance was "nothing short of outstanding" and the only fund they can find with comparable returns was the Yale University endowment fund.

ACC's investment portfolio manages about $20.5 billion and is the country's biggest fund.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Post Comment

6 Comments & Questions

Commenter icon key: Subscriber Verified

If the ACC board has a fund of $20 billion at which point will the ACC become self-funding and no levies will be needed?

Should the ACC not be returned to a work-based compensation only? It should not be paying out for sunburn, dog bites, rose pricks.
Is the fact that there are 1.7 million claims annually not something to be alarmed about.

Changes and competition are desperately needed.

Reply
Share

I presume the headline is for a Tui,s advertisement

Reply
Share

Yeah right!!!

Reply
Share

Seems easy to take a cheap shot and call yourself "anonymous", dude.

Reply
Share

Rebstock says "officials undertook due diligence into Mr Janes' role at Capital + Merchant and the Financial Markets Authority's investigation into the failed lender." If that is true any due diligence should be made public?

Reply
Share

Hey, I've got nothing against drongos being recycled.

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7851 0.0023 0.29%
AUD 0.8921 -0.0020 -0.22%
EUR 0.6196 0.0008 0.13%
GBP 0.4880 -0.0003 -0.06%
HKD 6.0923 0.0203 0.33%
JPY 84.9080 0.2610 0.31%

Commods

Commodity Price Change Time
Gold Index 1228.6 -9.570 2014-10-23T00:
Oil Brent 86.8 0.380 2014-10-23T00:
Oil Nymex 82.0 1.530 2014-10-23T00:
Silver Index 17.1 -0.073 2014-10-23T00:

Indices

Symbol Open High Last %
NZX 50 5292.8 5344.4 5292.8 0.77%
NASDAQ 4459.5 4486.3 4452.8 0.69%
DAX 9008.6 9044.9 9047.3 -0.66%
DJI 16677.0 16811.7 16677.9 0.76%
FTSE 6419.1 6419.1 6419.1 -0.47%
HKSE 23311.9 23352.6 23333.2 -0.13%
NI225 15354.4 15377.0 15139.0 1.01%