Vance Arkinstall has resigned as head of the Insurance Savings and Investment Association as he prepares to defend criminal charges relating to his role in the failed Dominion Finance Group.He will end his ten-year tenure in the role as chief executive at
Vance Arkinstall has resigned as head of the Insurance Savings and Investment Association as he prepares to defend criminal charges relating to his role in the failed Dominion Finance Group.
He will end his ten-year tenure in the role as chief executive at the end of the month – when the case is due.
Mr Arkinstall is one of six directors of Dominion Finance Group and its sister company North South Finance who are facing criminal and civil charges brought by the Securities Commission.
The charges relate to their role in allegedly misleading the 5900 investors in Dominion Finance Group, owed $176.9 million when the financier went into receivership on September 9, 2008,
Investors are expected to get less than 25 percent of their investment back.
The commission alleges that Dominion Finance Group's offer documents and advertisements misled investors by misrepresenting the investment risks.
North South Finance's offer documents and advertisements are alleged to have misled investors about related party transactions, liquidity and the company's overall financial position.
It’s expected the directors will defend the charges, which carry a maximum five-year jail term or a fine of up to $300,000.
The civil proceedings carry fines of up to $500,000 for each of the directors who are Richard Bettle, Terence Butler, Ann Butler, Paul Forsyth and Robert Barry Whale.
Mr Arkinstall’s resignation is an important move to maintain credibility of the ISI, a lobby group for the financial services industry.
Member companies manage more than $50 billion in savings and provide other financial services on behalf of more than 1,500,000 New Zealand investors and policyholders.
Mr Arkinstall said in a statement he was disappointed to be stepping down, but continuing as chief executive would not be appropriate in the face of the charges.
“ISI has established itself in a position of leadership with a strong reputation within the inancial services industry. I am proud to have been part of that success and would not wish to allow my personal situation to damage that position."
ISI chairman Sean Carroll said Mr Arkinstall had placed the association’s credibility and reputation ahead of his own personal circumstances.
“Vance wanted to preserve the ISI’s integrity and ensure it continued to operate without being affected by the unrelated charges he is facing, regardless of hs intentions to defend the charges."
