I like this piece from Micheal Coote on the NZ Securities Commission. He contrasts the approach of US authorities in throwing the book at white collar fraudsters with the rather ame approach of Seccom here in simply posting binding undertakings on its website from offending parties.

It reminds me that nearly 4 years agao i tried to interest Jane Diplock and the Commission in looking at finance companies. There was no reply. Sometimes i wonder what they get paid for. Trawling through their website I came across this speech by Jane Diplock to the International Investment Funds Assocation late in 2007. She is also the Chairman of the International Organisation of Securities Commissions.

It was a mind numbingly boring speech about global regulation of capital markets. Read it if you can’t sleep tonight. What surprises me the most is the lack of concern about the state of global markets, given the speech was dated 1st November 2007. That just about sums it up for me.

What have they been doing? Not much from what I can see. Meanwhile 17 NZ finance companies have gone under and the global capital markets are in dissarray.

But wait maybe they are onto something going by her concluding remarks

“We are at the cusp of a new global adventure into new realms of mutual recognition and consistent standards around the world. We live in exciting times!”

Strewth!

Ok i don’t often talk about my own business here but time to throw a story out for comment.

As some of you know I am a director of VortexDNA, a technology company based here in Christchurch. Now a while ago we were told we could get a grant from New Zealand Trade and Enterprise, which is our economic development agency for developer resources. Great we thought because we were short handed in that department and had plenty of work available.

We applied and were fortunate enough to receive $20,000 for a developer. I’ll state now that I am not a fan of government grants at all but if it’s available then I guess you have to take it.

The developer did some work for us and was very good. We decided to reward him with some stock in the company as we do with pretty much anyone who does anything worthwhile for us. It’s a measure of our gratitude and a desire to make people part of what they help create. Sounds good?

Well no not according to NZTE who have told us we were in breach of some clause in the agreement which states there can be no financial arrangement between the company and the developer. Stone the crows!

The audit people from NZTE have played firm with the rules and told us we have to repay the money and to add insult to injury we have been placed on a high risk register for any future application.

Needless to say the directors are fuming.

And I am even more convinced that government should stay well out of business.

Meanwhile we continue to expand into the US, UK and even Russia.

Under our own steam no doubt!