As Investment News NZ (IN NZ) goes to press for the first time a scandal is engulfing part of the very industry it aims to cover.
From a journalistic perspective, of course, the alleged Financial Markets Authority (FMA) investigation of a ‘high profile’ fund manager for market manipulation is a dream; for the industry itself, this is the stuff of nightmares.
As fund managers line up to issue denials, public confidence in the investment world– never a particularly robust quality – has taken another hit just as New Zealand’s financial industry enters the era of higher governance standards set by the Financial Markets Conduct Act (FMC).
The quicker the FMA completes its investigation, the better. As most New Zealanders are now exposed to the world of funds management via KiwiSaver, any erosion of trust in the industry could have far-reaching consequences.
Until the regulator either finds no fault, or names a guilty party, the whole funds business lies under public suspicion, potentially undermining the reputation-raising intent of the FMC licensing regime.
By now, everybody within the industry probably knows the real suspect – but no one is allowed to say.
Unfortunately, IN NZ isn’t allowed to say either this week. However, there’s plenty of other non-scandalous but still-arresting news in this launch edition.
Stay tuned for more: IN NZ will be providing weekly updates on the investment industry in New Zealand as well as opinion, research and insight.
Unless otherwise stated all stories are produced by IN NZ founder and editor, David Chaplin: feedback is welcome via the website contact button or email firstname.lastname@example.org
This is an advertising-funded venture (just click on those pretty graphic boxes) but the journalism remains a free-range affair. IN NZ is happy to hear from all interested parties with content ideas, news and rumours: scandals are optional…