MICHAEL BERRY AND HAMISH MCNICOL
Long-time Christchurch investor Max Smith was not personally stung by the failure of Hanover or other finance companies.
But, he said the effects of the 2008-09 finance company failures on people he knew was the impetus for taking a greater role with the New Zealand Shareholders' Association.
He did not know how many Cantabrians had invested in Hanover, but believed there would be "quite a few" around the region.
He had spoken to an elderly woman in the aftermath of the finance company failures who had lost her $15,000 nest egg.
While not a massive sum to most people, it was to the woman, Smith said.
"All people want is a fair return, they're not there to speculate or get rich quick . . . so many of them were older people who were at a stage where they couldn't start again."
Hearing her plight drove him to get further involved with the New Zealand Shareholders' Association.
Last month, he was appointed as a national director to the voluntary organisation.
"A lot of people got hurt in Hanover, as people did in many finance companies," he said.
It had been a sad time for Kiwi investors, and the events had put many people he knew off investing, he said. However, it had also led to regulatory changes that should make for a fairer market for the retail investor.
"Hopefully we can all learn from the past, although, we did all say that in 1987, didn't we."
It had put many people off investing in the sharemarket, plus finance companies, he said.
One woman he had spoken to had "1929 syndrome": She was frightened to invest in anything for fear of losing it all.
A Kapiti Coast-based financial adviser says the Hanover Finance criminal litigation was a "red herring", compared to the real compensation gains possible through civil action.
Chris Lee and Partners managing director Chris Lee said civil litigation could provide 80-odd cents in the dollar for investor compensation.
While some investors would be disappointed the Serious Fraud Office didn't believe it could prove beyond reasonable doubt whether a fraud occurred, "it does nothing to stop the strong hope that civil litigation will proceed.
"There will be litigation funders and interested parties working on the issue of compensation."
A civil claim could potentially bring in company auditors and trustees to a deal, the insurance for which was in the "hundreds of millions", he said.
Lower Hutt retiree Sante Battiston was looking for stronger punishment than just compensation after he lost $80,000 invested in the company, the largest of his finance company investments.
The former commercial grower said he hoped the former Hanover owners Hotchin and Watson "get their just desserts".
"That wasn't the only one I've had money in but I spread money around thinking, 'yeah, you'd be safe, you know? '
"Most of them collapsed, of course, but I got most of [my investments] back."
- ? Fairfax NZ News
Source: http://www.stuff.co.nz/business/industries/8618007/Finance-firm-failures-fired-up-investor
google maps 8 bit mirror mirror texas relays meniscus robyn the colony ncaa final four 2012
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.