Weekly Wrap: A spoon full of sugar to sweeten Bridgecorp pain

The original story talked of a "compensation" package, however MFS is hotly denying it is compensation for losses. The tricky part is that it isn't saying what sort of form the package will take.

As imagined the news of any such package is being warmly received by investors and people like Chris Lee. Indeed, the way MFS ceo Jason Maywald described it to Good Returns is positive. His take on it, is that the package is designed to restore some investor confidence.

That is something which is sorely needed at the moment. Today's Good Returns story reveals there has been terrible fund flow figures in the September quarter. These numbers support anecdotal evidence I have been hearing around the traps.
It seems there are a myriad of reasons behind the poor numbers including lots of bad news in the fixed interest space (finance companies, credit crunches etc), but there are also positive things happening such as good KiwiSaver signup numbers, and the introduction of the PIE tax regime.

As regular readers will know I have been a little disillusioned with the way the whole advisory industry has been tarred following some troubles in the finance company sector. There is a real need to build confidence and investor protection. On the latter I watched with interest Helen Clark's much-anticipated cabinet reshuffle to see who would be the Minister of Commerce. Lianne Dalziel has remained in the job and there is some serious work for her to urgently do in this sector.

Memo to Dalziel: Give investors protection One of the things I was looking out for in the Cabinet reshuffle this week was what happened to the Minister of Commerce.[more]

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