The Financial Markets Authority has published a report highlighting the key themes arising from its inquiries, investigations and enforcement activities over the past year: see here (pdf). The report refers to recent prosecution decisions, including R v Moses HC Auckland CRI 2009-004-1388 [2011] NZHC 646, R v Graham [2012] NZHC 265 and R v Petricevic [2012] NZHC 665, to highlight what is expected of directors. A section in the report deals with directors' reliance on others and, in this regard, it is stated that directors of public issuers are required to have more than a basic knowledge of accounting concepts: they must have a working understanding of accounting principles to enable them to properly understand the documents they are required to approve.
Thursday, 30 August 2012
New Zealand: the FMA's inquiries, investigations and enforcement report
The Financial Markets Authority has published a report highlighting the key themes arising from its inquiries, investigations and enforcement activities over the past year: see here (pdf). The report refers to recent prosecution decisions, including R v Moses HC Auckland CRI 2009-004-1388 [2011] NZHC 646, R v Graham [2012] NZHC 265 and R v Petricevic [2012] NZHC 665, to highlight what is expected of directors. A section in the report deals with directors' reliance on others and, in this regard, it is stated that directors of public issuers are required to have more than a basic knowledge of accounting concepts: they must have a working understanding of accounting principles to enable them to properly understand the documents they are required to approve.
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