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


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news