CMI enforceable undertaking acceptedThe Commission accepted an enforceable undertaking from contributory mortgage broker Contributory Mortgage Investments Limited (CMI), director John Martin and consultant Peter van Nieuwkoop on 23 February 2006. The undertaking is a result of our inquiry into CMI’s offering and management of interests in three mortgages, the Greys Avenue Development Limited first and second mortgages and the Trans Tasman Hotel Corporation Limited mortgage. The Commission found that CMI contravened a number of provisions of the contributory mortgage regulations in its offering and management of these mortgages. “We consider that CMI failed to meet the standards of care and good governance that the Commission expects from people who raise funds from the public,” Commission Chairman Jane Diplock said. “Investors may have been misled about the financial state of the borrower, the value of guarantees given and the use of investors’ funds to repay contributions made by trusts associated with Mr Martin and Mr van Nieuwkoop.” CMI, Mr Martin and Mr van Nieuwkoop acknowledged the Commission’s concerns and offered undertakings to the Commission. “By implementing these undertakings CMI has an opportunity to raise its standards of care and governance to the standards required of those who raise funds from the public,” Jane Diplock said. CMI, Mr Martin and Mr van Nieuwkoop have undertaken to:
The enforceable undertaking is on our website, http://www.seccom.govt.nz /notices/ enforcement/ enforcement-cmi.shtml |
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IOSCO Annual ConferenceMarket participants and regulators will meet to discuss issues currently faced in the global securities markets at the annual conference of the International Organisation of Securities Commissions in Hong Kong from 5-8 June 2006 Four public panels will discuss experiences with the
The panels are open to the public. If you would like more information on these panel discussions visit the conference website at www.iosco2006.org |
IOSCO’s Consultation ReportsIOSCO has recently released two consultation reports on its website at www.iosco.org. as follows:
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Share trading in Kiwi Income Property Trust reviewedThe Commission has completed a review of trading in the shares of Kiwi Income Property Trust (KIP) during November 2005. The review considered whether or not directors, officers or employees of a company associated with KIP had possession of non public, price-sensitive information relating to KIP at the time the associated company purchased a substantial holding in KIP. The Commission has investigated the matter and based on its findings has decided to take no further action. |
Discussion paper on foreign exchange futures contractsThe Commission proposes to declare certain foreign exchange contracts, known as margined foreign exchange contracts, or “rolling spots”, to be futures contracts under the Securities Markets Act. The effect of this would be that dealers in these contracts will need to be authorised as futures dealers. A copy of our paper is available on our website, or in hard copy from the Commission. |
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How to contact usSecurities Commission PO Box 1179, Wellington |
If you would like to receive The Bulletin by email contact catherine.chapman@sec-com.govt.nz |
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| The views expressed in The Bulletin do not necessarily represent the formal views of the Securities Commission, whether on securities or other matters. | ||
| 4 | THE BULLETIN April 2006 | |