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

 


Consequences for failing to comply with obligations

Consequences for failing to comply with financial statement filing obligations

The Financial Markets Authority (FMA) has filed charges against the directors of eight companies that raise funds from the public, for breaches of the Financial Reporting Act (FRA).

“Filing financial statements on time is a basic requirement for companies that issue securities to the public and failure to comply has serious consequences,” said Belinda Moffat, FMA, Director of Enforcement and Investigations.

“The FMA hopes these cases will help encourage better conduct and increase confidence in the fair and transparent operation of our financial markets.”

The FMA today released its review of non-filing of financial statements by companies who issued securities to investors. The review is based on the financial reporting of 416 limited liability companies with a 31 March 2013 balance date. It shows that 305 companies, or 73 per cent, had filed their financial statements on time. However, despite reminder notices being sent, 43 entities, or 10 per cent of the total, still had outstanding accounts at November 2013.

Following further reminder notices to each of these entities, FMA started court prosecutions against the directors of seven entities that had persistently failed to file. Proceedings were also initiated for the directors of one other entity with a September 2013 balance date that had repeatedly not filed financial statements.

The charges have been filed following FMA’s monitoring activity of the companies.

Belinda Moffat said directors were responsible for ensuring their companies filed financial statements in an accurate and timely way. “FMA decided on court action because these entities had persistently failed to file and presented the greatest harm to the market. This is determined either in terms of the number of investors, the amount of money involved in the companies, or an apparent disregard for the importance of ensuring that this important information is available.”

FMA’s concern is that failure to comply with filing obligations limits the availability of information to investors, the market and the regulator. This information is critical for an investor to make informed and timely investment decisions and for FMA to oversee compliance.

“We are sending a strong message to issuers of securities that there are serious consequences for failing to meet their filing obligations, “said Ms Moffat.

Read FMA’s Review of non-filing of financial statements

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news