Trustees open to change after finance company report

Clynton Hardy of the Trustee Corporations Association

Trustee companies say they are open to new measures to protect investors after a report said their failings were partly responsible for a "tsunami" of finance company collapses.

The Companies Registrar was reported last week as saying there had been failures across the entire supervisory framework for finance companies before their collapse.

In a report for Parliament's commerce select committee, Registrar Neville Harris painted a picture of multiple failures and dodgy practices.

Trustees who were meant to take a supervisory role had failed.

There are five trustee companies in New Zealand and at least 25 of the failed companies had used just two trustee companies - Perpetual Trust and Covenant Trustee.

The Trustee Corporations Association (TCA) yesterday said it was open to further measures to protect against collapses. Parliament's commerce select committee is considering whether to hold an inquiry.

TCA chairman Clynton Hardy said trustees were keen to work with the committee to ensure investors received the protection they deserve.

- NZPA