CBL Insurance IPO

[hardt]

From the article - https://www.interest.co.nz/opinion/9...-loopholes-our

FMA in response to his query

“Prior to 2 February 2018, although the FMA was aware of the RBNZ’s concerns, the information was in dispute between CBL and RBNZ. During this period there was insufficient information to be able to contradict CBL’s assessment of its financial position. The purpose of the RBNZ engagement was to substantiate the information being provided by CBL. The FMA engaged with NZX Regulation, who engaged with CBL during this period and CBL confirmed to NZX Regulation that it was in compliance with its continuous disclosure obligations.

"The fact that a listed issuer is engaging with a regulator is not necessarily material information in itself. The materiality of the information depends upon the nature and likely outcomes of that engagement.

What exactly is the FMA obligated to do for the market in NZ?

[bull....]

From the article - https://www.interest.co.nz/opinion/9...-loopholes-our

FMA in response to his query

“Prior to 2 February 2018, although the FMA was aware of the RBNZ’s concerns, the information was in dispute between CBL and RBNZ. During this period there was insufficient information to be able to contradict CBL’s assessment of its financial position. The purpose of the RBNZ engagement was to substantiate the information being provided by CBL. The FMA engaged with NZX Regulation, who engaged with CBL during this period and CBL confirmed to NZX Regulation that it was in compliance with its continuous disclosure obligations.

"The fact that a listed issuer is engaging with a regulator is not necessarily material information in itself. The materiality of the information depends upon the nature and likely outcomes of that engagement.

What exactly is the FMA obligated to do for the market in NZ?

The FMA will be using all of its new powers – including licensing, supervision, compliance, and enforcement – to react to potential harms that may arise in the markets. ........ The FMA would continue to intervene to prevent poor quality outcomes for consumers and investors.

https://fma.govt.nz/news-and-resources/media-releases/fma-focus-on-improving-conduct-and-increasing-trust-in-financial-markets/

on there page what they do ............ guess this time the outcome is not so good for consumers and investors

[minimoke]

on there page what they do ............ guess this time the outcome is not so good for consumers and investors

Unless the calculated potential outcome wasnt a high enough threshold

[Balance]

CBL Corp managing director Peter Harris has said there was a wider story to be told about how CBL got to where it is and where it might be heading. "The facts will show some mistakes we have made, and the cause and effect of those, and just where we are and why, along with our plan for dealing with these issues."

Behind the paywall on NBR today a title reads "more than $600M seen wiped off CBL equity."

Wider story to be told?

Start by telling why CBL went against RBNZ's statutory direction NOT to transfer or pay any more money/funds overseas - $55m worth.

Something smells and smells very very badly.

[Balance]

From the article - https://www.interest.co.nz/opinion/9...-loopholes-our

FMA in response to his query

“Prior to 2 February 2018, although the FMA was aware of the RBNZ’s concerns, the information was in dispute between CBL and RBNZ. During this period there was insufficient information to be able to contradict CBL’s assessment of its financial position. The purpose of the RBNZ engagement was to substantiate the information being provided by CBL. The FMA engaged with NZX Regulation, who engaged with CBL during this period and CBL confirmed to NZX Regulation that it was in compliance with its continuous disclosure obligations.

"The fact that a listed issuer is engaging with a regulator is not necessarily material information in itself. The materiality of the information depends upon the nature and likely outcomes of that engagement.

What exactly is the FMA obligated to do for the market in NZ?

https://www.rbnz.govt.nz/-/media/Res...ance.pdf?la=en

Pages 7 to 9 reveals very clearly the major developments with this sorry saga :

1. July 2017 - RBNZ directed CBL to increased its solvency ratio to 170%.
2. August 2017 - CBL and its actuarial rejected RBNZ's concerns.
3. 15 November 2017, CBL accepts RBNZ's concerns and findings.

Meanwhile, some of the entities CBL dealt with overseas like Elite and Alpha were failing and falling like ten pins over that period - and references made to doubts about CBL's solvency!!!!!!!

FMA and NZ Regulation can state and say whatever they want BUT the fact remains that they should have taken action in November 2017 and informed the market.

Materiality - wat der fak! The fact that CBL is now buggered puts a lie to what the FMA believes or believed. Big Fat Fail.

[horus1]

There is a case for a class action against the Co and directors ,surely.

[minimoke]

The FMA will be using all of its new powers – including licensing, supervision, compliance, and enforcement – to react to potential harms that may arise in the markets. ........ The FMA would continue to intervene to prevent poor quality outcomes for consumers and investors.

https://fma.govt.nz/news-and-resources/media-releases/fma-focus-on-improving-conduct-and-increasing-trust-in-financial-markets/

on there page what they do ............ guess this time the outcome is not so good for consumers and investors

Given the number of complaints and unhappy punters you might find the FMA is knees deep in checking out Cryptopia, the christchurch based Cryptocurrency exchange.

[Balance]

There is a case for a class action against the Co and directors ,surely.

http://www.afr.com/business/insuranc...0180307-h0x6px

CBL's Oz 100% subsidiary Assetinsure) plots independent path away from parent company and its very telling that Assetinsure executives are scathing about how the whole situation is being handled.

"The fact some children are behaving badly does not affect the other grown up kids," Assetinsure chief executive Gregor Pfitzer​ said about his company's relationship with other companies in the group. "Cleary, we have an interest in distancing ourselves from the overall environment," Mr Pfitzer said.

[macduffy]

Unfortunately, these "children", as subsidiaries of CBL, are all dependents of their parent - not "grown-up" and independent.

[Balance]

Unfortunately, these "children", as subsidiaries of CBL, are all dependents of their parent - not "grown-up" and independent.

This guy is talking about using private equity and other equity providers to take out CBL. Fascinating turnaround as they sold Assetinsure to CBL in 2015 in the first place!

Bring a personnel driven business, there is no goodwill left if the staff all leave en masse.