Briefs: Hanover Finance escapes SFO charges, NZBA criticises macro-prudential proposal

New Zealand's Serious Fraud Office has decided not to lay criminal charges over the collapse of Hanover Finance, after its biggest investigation ever. Hanover Finance collapsed in 2008 owing 13,000 investors over NZ$550 million. The SFO said it was concerned about Hanover's solvency and related party transactions but had decided not to prosecute because it was not sure of a conviction. The Financial Markets Authority is still pursuing civil charges against Hanover directors Mark Hotchin, Eric Watson and Greg Muir, alleging they misled investors in a 2007 prospectus.

The New Zealand Bankers Association has argued Reserve Bank proposals for macro-prudential tools may not give banks enough time to adjust and may also not have the economic or prudential effects intended. The NZBA's submission included an analysis by PricewaterhouseCoopers which estimates such tools could increase mortgage costs by up to 31 basis points; cost NZ$216.6 million in GDP; and cut up to 1,700 jobs.