Just a few days prior to the Christmas holidaysBrian Gaynor wrwrote an interesting article, in the NZ Herald on the role of the Securities Commission.
He raised a number of excellent points, including our weak securities legislation, the very low profile of the Securities Commission and the fact that many of our finance companies, especially those in trouble could be said to be analogous to the Ponzi scheme alleged to have be run by Bernard Madoff. As Gaynor points out Madoff has been arrested.
Little action had been taken, at the time of Gaynor’s article, by the authorities in NZ to probe what happened to the finance companies, yet proportionately NZ investors have lost as much if not more than Madoff’s investors.
Gaynor highlights a number of the endemic shortcomings of corporate governance in NZ. It is high time that these were addressed.
In effect he accused the Securities Commission of being ‘Missing in Action.
Interestingly shortly after the article was published the Securities Commission announced they were laying charges against the directors of some of the collapsed finance companies and the SFO confirmed it was investigating some of the companies.
So just what is the role of the Securities Commission?