MEDIA RELEASE
25 February 2002
INDUSTRY SUPPORTS SECURITIES COMMISSION
RECOMMENDATIONS TO CHANGE
"The Securities Commission’s recommendations for
changes to the law relating to investment advisers are welcomed by the Investment Savings
and Insurance Association (ISI)," said Vance Arkinstall, Chief Executive.
"Whilst we do not have the specific details of the
Commission’s report to the Minister, the industry enjoys a strong working
relationship with the Securities Commission and we are supportive of moves by the
Commission to improve public confidence in the investment advisory industry," Mr
Arkinstall said.
"New Zealand is fortunate in the quality and expertise of
its investment advisers – certainly those advising on managed funds, unit trust and
superannuation products. Advisers in New Zealand by and large do an excellent job.
None-the-less the industry constantly seeks improvements that strengthen the integrity of
the investment advisory process and increases investor confidence."
Mr Arkinstall said "The timing of these changes is
appropriate as we see an increasing number of individuals choose managed funds as their
preferred long term savings vehicles ahead of property."
"The Commission announcement is also timely as the ISI in
conjunction with several interested parties commenced a project in 2001 to identify
improvements and changes to the industry-led self-regulation process. We expect the
Securities Commission’s proposals will compliment the work we are undertaking,"
said Mr Arkinstall.
The managed funds industry manages retail investments through
superannuation, unit trust, insurance bonds and group investment products of approximately
$30 billion, often on behalf of many small and inexperienced investors. The industry takes
that responsibility very seriously which is why we value the integrity of the investment
process and seek ways to increase public confidence in this vital industry.
Ends
Vance Arkinstall
Chief Executive
ISI
