NZX Issues Statement Of Case Against Access And former Managing Director

A Statement of Case has been issued by New Zealand Exchange Ltd (NZX) against the collapsed Wellington sharebroking firm, Access Brokerage, and its former Managing Director.

Access Brokerage is the first respondent and the company's former Managing Director, Peter Marshall, is the second respondent.

The Wellington-based brokerage company is in liquidation following its collapse in September, 2004.

The Statement of Case was served on Mr. Marshall and the company's liquidator, Ferrier Hodgson, yesterday.

The Statement of Case alleges Access Brokerage breached the NZX Participant Rules relating to:

• Failing to hold client funds on trust and separately from the company's own operating accounts.
• Allowing the company's client funds account to go into overdraft.
• Failing to maintain liquid capital at the level prescribed by the NZX Participant Rules.
• Generally failing to maintain proper ethical standards.

The Statement of Case alleges Mr. Marshall breached the NZX Participant Rules relating to:

• Controlling, personally carrying out, procuring, directing and otherwise authorising the company's failures.
• Controlling, personally carrying out, procuring, directing and otherwise authorising the company's general failure to maintain proper ethical standards.
• Failure to attend an interview on matters related to alleged breaches of the NZX Participant Rules by the company.

Elaine Campbell, Head of Regulatory and Public Policy, said today “The matter will now follow the process set out in the NZX Discipline Rules:

• The respondents will have the opportunity to submit Statements in Response to NZX;
• Upon receipt of the Statements in Response, if any, NZX will submit the matter to NZX Discipline for consideration and determination; and
• NZX Discipline's consideration of the matter may involve an oral hearing, at which both NZX and the respondents will have the opportunity to call evidence.

“Once NZX Discipline has considered all relevant and appropriate matters, it will issue its Statement of Findings. Penalties can include censures, fines, orders for restitution, revocations of respondents' designations under the NZX Participant Rules and public statements.

“NZX does not intend to make any further statements on this matter until the disciplinary process has been completed,” Ms Campbell said.