Securities Commission established report
Friday 25 September 2009, 10:20AM
By Exposing Unacceptable Financial Activities
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EUFA welcomes the penetrating report of the highly qualified Independent Panel, chosen by the Securities Commission. Within the parameters set by the Commission itself, the Report addresses many concerns. It also suggests some well enunciated and major overhauls, some of which should have been raised by the Commission long before now.
While applauding the report, EUFA members note that once again, it is disappointing that the huge number of ordinary investors represented by EUFA were effectively disenfranchised by the exclusion of EUFA from the consultative process. In the report it lists over 40 “stakeholders” interviewed by the panel, including the Director of Grey Power and Media commentators. The EUFA organisation representing affected victims of the finance industry crisis were ignored as “stake holders” at a time when their lives have been destroyed and have almost everything they have ever worked for at ‘stake’.
Over 250,000 ordinary investors, who are the lifeblood of the industry, and who lost some $7.5 billion in 48 Finance Companies, have a right to have their concerns taken into account and to be the subject of future consideration.
There are also fears that there may be a result not intended by the Independent Panel, that of empire building, and remoteness from the investing public.
EUFA members recognise the Commission would not include in the parameters of the Independent Report the possibility of a Securities Ombudsman. Coordinator of EUFA Suzanne Edmonds, said that, “Given the fact the three "legs" of financial activity are Banking, Insurance (both of which are catered for by Ombudsmen) and the Securities Industry, the appointment of a Securities Ombudsman is both logical and essential. This would be a point of access for investors who are troubled, however much consideration would need to be given to independence and terms of reference which are a serious issue in the Banking and Insurance Ombudsman’s schemes.
On the whole, EUFANZ welcomes many aspects of the Report, and trusts that Government will act upon it with urgency. However, EUFA members continue to believe an independent report by an independently appointed Inquiry is essential to investors.