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


Lombard verdicts highlight directors’ duties, says FMA

29 March 2012

Lombard verdicts highlight directors’ duties, says FMA

The Financial Markets Authority (FMA) today acknowledged the High Court’s sentencing of four directors of Lombard Finance & Investments.

“The guilty verdicts in this case, and the sentences imposed, illustrate the obligation on directors to ensure that investors are properly informed, and are kept informed,” FMA CEO Sean Hughes said.

“These verdicts, like those in the earlier Nathans Finance case, are a reminder to directors and their advisers that timely, accurate and meaningful disclosure to investors is an obligation which cannot be delayed or delegated to others. These responsibilities are hallmarks of New Zealand’s disclosure regime.

“FMA is keen to help directors get these obligations right. We have a process underway to provide the market with further guidance.”

In his 24 February judgment Justice Dobson said the primary issue was the adequacy and accuracy of disclosure.

New Zealand’s disclosure regime “intended that investors be in a position to make decisions for themselves by being adequately informed on material matters, rather than making an investment decision in reliance on an assessment of the quality of judgment of those who would become custodians of their investments,” the judgment said.

Lombard Finance & Investments was placed in receivership in April 2008 owing $111 million to around 3,600 investors.

Sir Douglas Graham, Michael Reeves, Lawrence Bryant, and William Jeffries were found guilty on 24 February 2012 of four charges under section 58 of the Securities Act on the basis Lombard’s December 2007 prospectus and three investment statements contained false statements.

The value of investments and reinvestments made during the currency of the December 2007 offer documents was approximately $10.45 million.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

QV: Tax Changes Yet To Dampen Red-Hot Housing Market

Just over a month has passed since the Government announced measures aimed at dampening the rampant growth of the property market, and yet the latest QV House Price Index data shows the market hit a new high in April. The average value increased 8.9% nationally ... More>>

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>