Dalziel Lianne: Financial Service Providers (Pre-Implementation Adjustments) Bill — Second Reading In Committee 
Text is incorporated into the Bound Volume 
Dalziel Lianne: Financial Service Providers (Pre-Implementation Adjustments) Bill — Second Reading In Committee 
[Sitting date: 22 June 2010. Volume:664;Page:11976. Text is incorporated into the Bound Volume.] 
Hon LIANNE DALZIEL (Labour—Christchurch East) 
: 
 I feel that I ought to follow up the contribution from Ross Robertson with a mea culpa because if anyone was supposed to put the finance companies that failed in 2006 2007 and 2008 into statutory management it was me. My colleague was inadvertently criticising the former Minister of Commerce. So I thought it was important that I stand up and reclaim my integrity in this matter. 
In respect of the Hubbard case I state for the record and it has been stated by the Minister—and I do not think it is appropriate for us to debate that matter at this moment—that the only way that the Minister of Commerce can put a company into statutory management is on the recommendation of the Securities Commission. There is no right in law for the Minister to operate in isolation of that recommendation and once the commission makes that recommendation there is a requirement really on the Minister to act on that recommendation. That is the appropriate way—my colleague is assisting from the side here. It is the appropriate course of action. 
Charles Chauvel 
: I’m always right. 
Hon LIANNE DALZIEL 
: Of course. 
Charles Chauvel 
: Always assisting. 
Hon LIANNE DALZIEL 
: He is always assisting. But the point I am making is that the reason it has to be that way is that the investigative powers of the Securities Commission have got to be called into play in order to provide a Minister with the advice that is required before placing a company into statutory management. A range of different processes can be put into place in relation to a company that is failing. Statutory management is the most extreme of those. There are also of course receiverships and there has been the development of the model of moratoria. It is the moratoria that have deeply concerned me and I know that members of the Commerce Committee share this concern. I note also that John Boscawen from the ACT Party has raised concerns in this regard. 
I think that one of the problems we have in dealing with this legislation in isolation from what is to come next is the amalgamation of the regulatory functions of the Securities Commission the Companies Office and some aspects of the stock exchange into the new regulator that the Government is proceeding with. I am supportive of that and I think it is a very good move but it has meant another delay in the release of one of the most important discussion documents that we are waiting for and that is the review of the Securities Act. I think that piece of work will bring the whole lot together and this bill is an important component of it. 
People forget—and I know that we chip each other across the Chamber—that the Review of Financial Products and Providers produced nine documents that followed on from the Task Force on the Regulation of Financial Intermediaries. The financial intermediaries document was consulted on when I was not the Minister of Commerce. It was consulted on in 2005. At the end of 2005 I picked up the portfolio and I think one of the first Cabinet papers that I took through Cabinet was the results of the report of the Task Force on the Regulation of Financial Intermediaries. That is when the beginning of the process on financial advisers occurred in terms of the legislative timetable. Then the Review of Financial Products and Providers produced nine documents covering the myriad different components of what makes up our financial sector. It was a considerable amount of work. I think if we had gone straight to regulation in 2006 we would have been rightly criticised for not doing sufficient consultation with those affected. 
I am not shying away from the fact that we would all have liked to see things pan out differently. I must admit that as the Minister of Commerce I had many sleepless nights. There were many times when I woke up in the morning wondering what the lead item would be on  
Morning Report 
.