NZ Financial Community Lazy

NZ Financial Community Lazy

Econet has lambasted the New Zealand financial community’s reaction to yesterday Vector announcement by the Commerce Commission.

“Institutional investors in New Zealand have had it too easy too long. They have become very lazy. Unfortunately, you can afford to be lazy investing in unregulated monopolies,” said Econet’s Chief Project Director, Tex Edwards.

New Zealand investors have failed to keep up with the normal regulatory frameworks of OECD and are, therefore, unwilling to accept a refreshed regulatory approach intended to protect consumers, lower the cost of doing business and drive dynamic, new entrant investment.

“New Zealand’s institutional money managers have been living in a cocoon. They’ve spent far too much time drinking to monopoly dividends at stockbrokers’ parties and not enough traveling the OECD getting to understand how financial markets work when there are proper rules to protect consumers and new entrant investment.

“These institutional investors have benefited from a ‘regulatory subsidy’ and are now facing by a more sophisticated investment environment,” said Edwards.

Econet welcomes the Commerce Commission’s efforts to sort out Vector and looks forward to similar policy rigour being applied to the airport and mobile telecommunications industries.

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