Cost recovery regime boosts funding

By Mike Ross

Friday 18th August 2000

Securities Commission funding in the last year was boosted by its new cost recovery regime for exemption applications.

The commission pulled in $428,000 from application fees, against budgeted income from this source of $320,000, according to its annual report.

Last financial year, a government grant of $2.2 million provided the bulk of the commission's funding. Chairman Euan Abernethy said an increased government grant, up from $1.9 million in the previous year, allowed the commission to increase the level of surveillance and enforcement.

For the year to June 2000, the commission increased its output more than 21%.

It concluded eight inquiries into insider trading, three of which resulted in public reports.

An inquiry into the operations of Max Resources was published.

Seven public warnings were issued about scam offerings to the public. Nearly 30 instances were referred to the registrar of companies or the serious fraud office.

Two companies, IMI Pacific Group and Walakahai Pacific Corporation, were put into statutory management.

A review of documents offering securities to the public resulted in nearly 50 offers being withdrawn from circulation.

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