MEDIA RELEASE
14 January 2004
FUND MANAGEMENT INDUSTRY BODY CONFIDENT THAT NO
ILLEGAL PRACTICES OCCURRING IN NZ
"The Investment Savings and Insurance Association (ISI) is
not surprised to hear that the Securities Commission may be considering an investigation
into the practices of fund managers and is confident no illegal actions have
occurred", said ISI Chief Executive, Vance Arkinstall.
"Midway through last year it became known that some fund
managers in the US had engaged in illegal "late trading and market timing"
activities that advantaged some select investors ahead of others. It also became known
that some US fund managers were failing to pass on large volume fee discounts in some
cases. These activities are being investigated in the US, led by New York Attorney General
Elliott Spitzer", said Mr Arkinstall.
"As a consequence of the nature of the operation of markets
in NZ we are totally confident that these practices have not occurred in this
country", said Mr Arkinstall.
"The Securities Commission has a role as regulator to ensure
that investors have complete confidence in NZ securities markets. Therefore, it comes as
no surprise that the Commission have foreshadowed they may make enquiries. We can fully
understand that the Securities Commission may need to check", Vance Arkinstall said.
"Similar investigations are occurring in Australia by the
Australian Regulator – ASIC", said Mr Arkinstall.
"The funds management industry stands ready to assist the
Securities Commission. It is in the best interests of all that we remove any shadow of
doubt that may result from unacceptable practices in other parts of the world", Mr
Arkinstall said.
Ends.
For further information contact:
Vance Arkinstall, Chief Executive
