Govt watching Hanover Finance situation

The Finance Minister Michael Cullen is being kept informed of developments following the decision by Hanover Finance to freeze $554 million of investors' money. The finance company is the latest to hit troubled times. However, its major shareholder is confident the company will keep operating. Following the collapse of several finance companies earlier this year, the Securities Commission began an investigation. It is looking into the actions of some of the companies to decide whether they have been honest with investors. A spokesman for Michael Cullen says the Government believes its legislation going through Parliament will help tighten regulation of the finance sector, including reforms to provide better information for investors. Programmes have been announced during the year to bring finance companies under stricter... [read full story]