26 Aug 2009

Finance company trustees to be licensed

4:29 pm on 26 August 2009

The Government is making further changes to improve investor confidence in the finance company sector.

The latest changes involve improving the performance of trustees, who have been criticised for their failure to spot and stop problems with the sector they oversee.

Commerce Minister Simon Power says a licensing regime will be introduced for trustees.

It will be administered by the Securities Commission and give the regulator greater powers over errant trustees.

Mr Power will also introduce regulations to make sure moratoria proposals, where finance companies ask investors to defer repayments to avoid going under, are clear and concise.

He says the changes offer greater protection for investors as the Government also moves to loosen rules to allow firms to raise money more quickly.