The Parliamentary inquiry into finance company collapses will not be an avenue of redress for investors in failed ventures, rather it will focus on the issues facing investors to ensure they are well-informed.

Peter Lynn brings back the debate that I first encountered when I returned to New Zealand in 1998.  Is active management worth the higher fees than passive investment? This is a more straight forward debate now that the tax incentive has been removed for New Zealand passive investors.
Helen McKenzie, Tyndall.

The China story has been well debated since our August comment.  Andrew's caution was warranted, with a 20% plus decline in their stocks in August. In the US, September has the dubious historical record as the worst month in the year for stocks, with the Dow Jones Index on average since 1928 losing 1.30%; many commentators are introducing caution into their expectations.

High court rules Mascot Finance debenture holders to receive payments; IMP Diversified Fund investors unlikely to get all their money back; Six-month deposit rates climb 8.5%; Deposit rate war focused on long terms, Westpac special on 9-months until 9/11.

Insurance & Savings Ombudsman scheme gets new chairman.

Sale prices of advisory firms revealed; Financial Awareness Week; New site for accountants; Super survey shows currency matters; Russell goes responsible.

Auckland

The most interesting story this week is the one about ASB finding out one of its advisers had been up to some dodgy things. You have to feel for the bank as they have put a lot of time and effort (as have other distribution channels) into ensuring this sort of thing doesn’t happen.

ASB has reduced its floating home mortgage rate by 65 basis points taking it to 5.75% - the lowest its been in more than 40 years. 

Wellington