Investors' confidence to entrust their savings to New Zealand's investment markets, including KiwiSaver, is at stake in the slow investigation into company collapses.
This was the position of the New Zealand Shareholder's Association Chairman John Hawkins, who addressed the Financial Markets Authority and the Reserve Bank, and wrote to Prime Minister Jacinda Ardern.
After almost two years, there was no result from the FMA about its investigation into the collapse of Wynyard with millions of dollars, nor about the failure of the CBL Corporation.
The FMA responded by saying that monitoring and enforcing financial laws was complicated – "the facts and circumstances determine how long a case lasts".
* Call to protect KiwiSavers against a bankruptcy of CBL Insurance with a value of 750 million dollars
* Serious Fraud Office analyzes CBL
* High Court places CBL Insurance in interim liquidation
* The reserve bank says that CBL paid $ 55 million despite doubts about solvency
But Hawkins predicted the reaction and said it was not good enough.
"What if there was a kind of meltdown in KiwiSaver funds? How many years would they take to investigate?"
Hawkins said that trust had been lost in the Reserve Bank and the FMA investigators because their actions indicated that they did not agree on a path that was fair, efficient and transparent for investors, including holders of insurance policies issued by CBL.
A particular difficulty was the requirement of the Reserve Bank to maintain confidentiality, which meant the FMA obligation directly contradicted the continuity of the disclosure, according to Hawkins.
"As a result, we had a badly informed market for almost a year, followed by a $ 750 million failure."
He claimed that relevant information about CBL had been given to the FMA years ago, even before the offer of public investments, but the information was discounted by the FMA.
The number of staff and resources was increased at the FMA, but if there is something, their performance is worse, he claimed.
Hawkins had met the Minister of Commerce and the Minister of Finance had written about this.
The lack of progress in the CBL probe was not helped by the fact that some cases were also investigated by the Serious Fraud Office, under the supervision of another government minister, he said.
"Our group is apolitical and in our opinion a notable part of the problem is the public perception that market regulators are not effective, and so investment in these productive areas is too risky.
"No market can respect a system whose boundaries are vague or unknown." Justice is postponed is entitled to remember. "
In a statement, the FMA said that public confidence in regulators was essential "and we understand that".
"The FMA and RBNZ are currently working together on the culture and behavioral review.
ROBERT KITCHIN / STUFF
"There is currently an FMA investigation into CBL in addition to the joint investigation of the Reserve Bank and the SFO.
"We have taken as many measures as possible to speed up decision-making and to offer additional resources." We are well aware of the evidence standards required by law, "said the FMA.