News

The Crown is facilitating repayment of SCF’s prior-ranking debts along with all debt-security holders. The Crown has also decided, as of 31 August, that it will repay all depositors of guaranteed companies that default, including those that have already defaulted, regardless of any previous eligibility criteria that were in place for its Retail Deposit Guarantee Scheme.

The Treasury has said, “Criteria relating to citizenship and tax residency will no longer apply and depositors will not be assessed using those criteria. The repayment criteria for being repaid is that you are on the register of debt securities at the date of default.”

However, not ALL security holders are eligible under the Crown guarantee; below we note who is eligible and what the Crown guarantee will not cover.

Eligibility

Debt securities eligible for repayment include: call deposits, term deposits, non-guaranteed deposits, debentures and bonds. The government’s decision to repay all depositors of Crown-guaranteed financial institutions that have defaulted means repayments will be made to some depositors who may not have previously been eligible for repayment.

This decision applies for defaults by approved institutions from the start of the current Retail Deposit Guarantee Scheme until 12 October 2010. The Crown-guaranteed institutions that have defaulted are listed below.

Eligibility criteria that include citizenship and tax residency will continue to apply in the event of a default after 12 October 2010 by entities approved for the extension to the Guarantee Scheme. The extension to the Retail Deposit Guarantee Scheme runs from 12 October 2010 to 31 December 2011.

What it does not cover

It is important to note that equity securities such as ordinary shares and preference shares remain ineligible for repayment under the Crown guarantee.

Also, trusts with trustees who are paid for their work as trustees are not eligible for the Crown guarantee as they fall under the wide definition of financial institutions, see: http://www.treasury.govt.nz/economy/guarantee/retail/qanda 

Trusts with an accountant or lawyer as a trustee may still qualify. However if your trust has a corporate trustee which charges fees (rather than a law firm) your trust may not qualify.

Treasury said on 1 September that no decision had been made if the eligibility changes for South Canterbury Finance will also result in a change to these rules.

Prudent trustees will not invest in finance companies if they are relying on the Crown guarantee for peace of mind.

Keep an eye on the Treasury website, www.treasury.govt.nz for further developments.

If you would like to talk more about the Crown guarantee and any investments you or your trust may have made, please don’t hesitate to contact your local NZ LAW office. To find that firm please go to Find a Law Firm

Crown-guaranteed institutions that have defaulted are: South Canterbury Finance, Allied Nationwide Finance, Mutual Finance, Viaduct Capital, Vision Securities, Strata Finance and Mascot Finance

[03/09/10]

NZ LAW Member awarded IT Certification

Lawyer Rick Shera, a partner at Lowndes Jordan in Auckland is the first New Zealand IT lawyer to be made an Information Technology Certified Professional after gaining certification recently.

ITCP is a professional certification established and governed by the New Zealand Computer Society and the industry. The Society's chief executive Paul Matthews says the demand for the qualification had exceeded the society's expectations.

"It is now recognised as a must-have qualification for senior practitioners in the New Zealand ICT space and, because it relies on internationally accepted standards, is also an excellent entree into overseas markets", Mr Matthews said.

"The accreditation of 'periphery' IT practitioners such as IT lawyers and other is certainly not a given," he says. "Mr Shera received ITCP because he could demonstrate a thorough understanding of the concepts and knowledge that underpins ICT, the proven ability to apply that knowledge in his area with positive results, an appreciation of what it means to be an ICT professional, and a willingness to practice in accordance with the Code of Professional Conduct.

"The definition of what makes an IT Professional is certainly broad, however the fundamental principles apply across the board. We're delighted that Rick has worked through the comprehensive assessment process and emerged with ITCP."

Mr Shera says ICT law is multi-disciplinary. "I could not practice in this area without a detailed knowledge of the internet, computing and telco industries themselves so it is good to have that recognised. The application process itself was thorough and makes me even more thrilled to have achieved what I see as a very valuable certification."

The New Zealand Computer Society is the professional body of ICT professionals and as a non-profit incorporated society works with industry, academia, Government and the wider community to increase the education, standards and professionalism of the New Zealand ICT profession, and the base-level computing skills and confidence of New Zealanders.

Source: LawTalk 757

[25/08/2010]

James & Wells explain the Major Events Management Act to the Nation

With several major sporting events on the horizon in New Zealand, Fair Go did a piece on the Major Events Management Act 2007 on 11th August 2010. The Act protects against “ambush marketing”. Certain words and emblems are now protected from use by unauthorised persons to denote a connection with a major event such as “Rugby World Cup”, “RWC 2011” and “World Rowing Championships 2010”. 

Fair Go went to NZ LAW Member Firm, James & Wells, as experts in this field and their senior associate, Katrina Crooks, appeared on the programme.

A video of the piece is available at http://tvnz.co.nz/fair-go/s2010-e15-video-3691867 . If you have any questions or concerns surrounding your major event promotions, please do not hesitate to contact Katrina Crooks on Katrinac@jaws.co.nz or phone 09 914 6740.

You can also find further information about the Act here.

[11/08/2010]

New NZ LAW Firm

NZ LAW is please to announce Breaden McCardle Chubb of Paraparaumu as their 62nd Member Firm. They are our first member on the Kapiti Coast. Visit their website here.

[23/07/2010]

New community service established by Kerikeri member firm

NZ LAW member firm, Kerikeri’s Law North Limited, has re-thought the model on community law practice. Realising the firm has a responsibility to help those most in need, Law Clinic opened this month at a street frontage in central Kerikeri.

Having a close working relationship with many of the local financial institutions, financial advisers and real estate agents, Law North knows that the financial realities of the current economic climate have begun to bite. Realising that there are people in the area who are in need of independent legal advice in relation to their finances gave the team at Law North an idea.

Law Clinic is, in many ways, the community law arm of Law North and has been set up to help those who can’t afford to see a lawyer, an opportunity to share their financial problems and gain some much needed general legal advice and support.

Lawyer, Timothy Hatherley-Greene sees clients for a free confidential 20-minute consultation. Focusing on mortgage and financial advice, Timothy says that the initiative has been very well received. “Giving people a taste of our firm’s culture and showing them the real side of lawyers is important to our firm. We’re keen to do our bit to give the community the professional help they need during tough times.”

Law North director, Richard Ayton said “The Law Clinic gives Law North a much stronger presence in our local community and, most importantly, an opportunity to help those less fortunate than ourselves.”

Law Clinic is open from 1-2pm on Mondays, Wednesdays and Fridays at 91 Kerikeri Road, Kerikeri. Phone 09 407 7099.

[30/06/2010]      
 

Government signals major overhaul of securities law

Submissions due 20 August 2010

A major overhaul of securities law has been signalled by the government this week. Commerce Minister, Simon Power has called for public submissions after releasing a discussion document on New Zealand’s securities law, see www.med.govt.nz/upload/73375/discussion-document.pdf

The Minister has proposed a substantial revision of securities law and also an update of New Zealand’s regulatory regime. The current Securities Act is 30 years old and, although it has been continually revised, there are inherent weaknesses in the legislation as capital markets evolve. The Ministry of Economic Development is proposing that a new Act should replace the Securities Act 1978 and the Securities Markets Act 1988, as well as amending other related legislation.

The proposals will complement changes to financial sector regulation including the Financial Advisers Act 2008, the Financial Services Providers (Registration and Dispute Resolution) Act 2008, the Securities Trustees and Statutory Supervisors Bill and recent government decisions to consolidate the market conduct regulators into a new Financial Markets Authority, and changes to improve the regulation of retail KiwiSaver schemes.

The proposed new Act will set out:

• Which financial products are to be regulated and how they are to be regulated
• Tailoring of disclosure requirements to better suit a retail investor audience
• Improving governance of managed funds, which are a key product for retail investors, and
• Possible additional powers for the Financial Markets Authority.

“The review aims to strike a balance between open markets and the prudent stewardship of investors’ money,” said Mr Power. “The government cannot and will not legislate for risk, but we can build a regime that makes those risks more transparent.”

Submissions to the Ministry of Economic Development close on Friday, 20 August 2010.

[24/06/2010] 

New Partners for 2010

NZ LAW member firms have welcomed new partners for 2010. Congratulations to:

• Peter Magee, Thomson Wilson, Whangarei, and
• Richard Smith, Cruickshank Pryde, Invercargill
• Jolene Patuawa-Tuilave, Jackson Reeves, Tauranga
• Terry Kirkham, Le Pine & Co, Taupo

New Partners appointed Notaries Public

Two partners in NZ LAW member firms have recently been appointed Notaries Public:

• Andrew Harris, Gifford Devine, Hastings, and
• Graeme Todd, Mactodd, Queenstown

The office of Notary Public allows Andrew and Graeme to verify the signing of documents that are required to be used overseas.

A Notary Public is a private professional to whom the Crown entrusts the function of authenticating transactions and documents in proper legal form. New Zealand Notaries Public (who are appointed by the Archbishop of Canterbury) are required to hold formal legal qualifications, unlike their US counterparts.

For a full listing of NZ LAW member firms with a Notary Public, please click here.