Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Commerce Commission to lay charges over swaps

Media Release

17 December 2013

Commerce Commission to lay charges over swaps

Having written to the Commerce Commission last November and encouraged members affected by interest rate swaps to contact the Commerce Commission, Federated Farmers welcomes the Commission’s decision to put the matter before the Courts.

“Having fielded calls from concerned farmers over recent years, we formally wrote to the Commerce Commission in November 2012 requesting that they look into the selling of interest rate swaps,” says Bruce Wills, Federated Farmers President.

“Now we have the news that the Commission has found there is a case to be answered under the Fair Trading Act.  Legal proceedings are to be filed in the New Year against ANZ Bank, ASB and Westpac.

“Some of the debt instruments sold to farmers have been highly complicated to say the least.  In both 2009 and 2010, we mentioned problems with swaps in various submissions, including to the Opposition’s Banking Inquiry and the Review of the Banking Code of Practice.

“This was why we felt the Commerce Commission was best placed to properly investigate them and its decision today vindicates this faith.

“The Commission looked at swaps from the perspective of the Fair Trading Act 1986.  This includes misleading and deceptive conduct in trade such as false and misleading representations.

“In this case the Commission is looking at potential breaches of sections 9, 11 and/or 13.

“Federated Farmers supports the Commerce Commission in wanting to hear from farmers adversely affected by swaps.  They can contact the Commission on 0800 943 600.

“We believe the case, when it comes before the Courts, will help to resolve what has been controversial to say the least.  It will also be a good opportunity to remind the entire financial industry of its wider obligations,” Mr Wills concluded.

Federated Farmers letter to the Commerce Commission (November 2012)

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news