Finance Industry tribunal called for

The EUFA organisation is publicly calling on the government to set up a tribunal to address all troubled finance company investor complaints. EUFA was formed on the back of the Wellington couple, the McSorileys, and their dispute with their AMP advisor. The dispute still remains many years later for the McSorileys - highlighting that there is no avenue for hearings for claimants against advisors or companies.

Since the Finance Company collapse - it is noted that a culture to dismiss the investors’ loss overrides the laws broken. This culture sits with many Politicians, Government authorities, the big time Directors to the small town advisor. In a concerning situation last year an MP who holds an oath of office to protect the people he serves - advised his constituent to simply accept the loss and get on with life. This mentality from our leaders gives ordinary New Zealanders little hope and allows an industry to continue on a destructive path and offers no accountability for any wrong doing.

New Zealanders are faced with watching some very calculating and dishonest Directors and other players walking away from their responsibilities due to the unavailability of a justice forum.

In the case of the 'Leaky Homes' situation, a tribunal was set up and is reported to be working well for victims who would otherwise be carrying the load. Investors are carrying an equally devastating load, with most having lost life savings to the unscrupulous finance companies.

Many laws exist to charge the perpetrators but there is no manageable forum for victims to take their claims. Added to the financial and emotional resources that victims are faced with, the court waiting lists and unavailability of legal aid is adding to the crisis investors now face.

Coordinator of EUFA Suzanne Edmonds said “Finance companies sold ‘Leaky Investments’ and the money poured into the pockets of directors and lenders and left the rot to set in for investors. If a tribunal ruled that money laundered was to be repaid to investors, as is happening in the building industry - our economy may well rejuvenate quicker than is predicted.”

Rulings against advisors by the industry such as IFA do nothing to rebuild the economy and investor rights are stymied by the unavailability of affordable recovery action.

In 1975 the government afforded Maori the Waitangi tribunal to have grievances heard as a fair and just process. Investors have worked hard, some have fought in wars for NZ and all have contributed to society by being conscientious savers. The Government of today owes the same rights to the backbone of New Zealand as they did to the Maori people of New Zealand.