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

 


FMA joins probe into interest rate swap sales to farmers

FMA investigates whether banks breached financial markets laws on interest rate swaps to farmers

April 24 (BusinessDesk) – The Financial Markets Authority, New Zealand’s markets watchdog, is investigating whether the sales and marketing of interest rate swaps by major banks to rural customers may have breached financial markets laws.

The FMA is working with the antitrust regulator, the Commerce Commission, to see if the banks have breached laws including the Securities Act 1978 and the Securities Markets Act 1988, the watchdog said in a statement. It declined to comment further while the investigation is ongoing.

The Commerce Commission began its probe in 2012 on concern banks had misrepresented swaps to rural customers and has said it plans to file legal proceedings against the Australian-owned ASB Bank, ANZ Bank New Zealand and Westpac New Zealand, citing possible breaches of the Fair Trading Act, and said it was also looking at other institutions which sold the swaps.

Interest rate swaps allow clients to manage the interest rate exposure on their borrowing and are typically marketed to large corporations and institutions. From 2005, banks began marketing them to their rural and commercial clients and the Commerce Commission has received more than 140 complaints about the way the financial derivatives were sold.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Consents And Taxes: Trustpower 'very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news