Govt moves quickly on finance company proposals

The Labour-led government has accepted proposals by the Securities Commission and is moving quickly to give Trustee Companies improved tools to supervise finance companies on behalf of investors, Commerce Minister Lianne Dalziel says.

In response to an oral question in Parliament today, Lianne Dalziel said Cabinet has decided to implement the recommended changes by facilitating the making of the regulations which are currently being drafted.

The amended requirements will automatically become part of every existing trust deed, and every new trust deed, and will therefore apply to all finance companies operating in New Zealand.

"On Thursday last week the Securities Commission provided me with proposals to ensure that all trust deeds provide trustees with robust powers to get the information they need to carry out their duties in the interests of investors. At its meeting yesterday, Cabinet supported the making of regulations which are now being drafted and which I hope to take back to Cabinet as early as next week."

The proposed changes strengthen the supervisory powers of Trustees in the interests of investors including the power to obtain more timely and relevant reporting by finance companies together with the ability to bring in independent experts and to appoint an additional auditor if necessary.

"I am pleased the Securities Commission and the Labour-led government have acted so promptly within existing frameworks to promote best practice across the sector," Lianne Dalziel said.