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Government welcomes results of inquiry into finance company failures

Page last updated: 29 Mar 2012

Craig Foss
29 March, 2012

Commerce Minister Craig Foss has welcomed the findings of a Commerce Select Committee inquiry into finance company failures and says the government supports the general nature of its recommendations.

"The Commerce Select Committee has done an excellent job of investigating issues relating to finance company failures and made sensible recommendations," says Mr Foss.

"The Government has carried out significant work in reforming financial markets over the last three years, most notably creating the new Financial Markets Authority. Many of the issues identified by the Commerce Committee have either already been addressed or are being examined right now."

"All but two of the Commerce Select Committee's 13 recommendations have been taken on board" says Mr Foss.

The Government is already progressing work in line with the recommendations:

  • The Financial Markets Conduct Bill will address issues of disclosure, trustees, financial advisor and director duties.
  • Further policy work is being undertaken to progress legislation on class actions.
  • Financial literacy initiatives are being evaluated and improved.
  • The Law Commission is examining issues around the operation of trusts.

Mr Foss says "the Financial Markets Conduct Bill, currently at Select Committee, is critical to the continued rebuilding of investor confidence in New Zealand."