The past 12 months have been among the most significant in the history of New Zealand’s financial market regulation, according to Securities Commission chairwoman Jane Diplock.
The commission, which is due to be rolled into the new “super-regulator” next year, released its annual report for 2010 today.
Ms Diplock said for Securities Commission members and staff it has been a year of “frenetic activity and significant highlights.”
She said one of the most significant trends in the New Zealand investment market over the past year has been the continued growth of KiwiSaver.
“As many thousands of New Zealanders become first-time investors in New Zealand’s securities markets, the role of effective market regulation as a foundation for investor confidence is more important than ever.”
The report’s highlights show that it has been a busy year for the commission, which had come under fire by a range of commentators for its response to, among other things, the collapse of the finance company sector.
During the year the commission laid criminal and civil charges against the directors of Capital + Merchant Finance, Dominion Finance and Lombard Finance.
It also took civil proceedings against Nuplex and its directors, alleging breach of NZX continuous disclosure obligations and the Securities Markets Act 1988, the first case of its type to be taken.
The commission referred six finance company cases to other authorities for further action and investigated 27 possible cases of market misconduct.
However, perhaps its most controversial act has been recommending to Commerce Minister Simon Power that Allan Hubbard and his wife Margaret be placed into statutory management alongside Aorangi Securities and several charitable trusts.
The full report is available here.
Tue, 17 Aug 2010