Date 12 December 2012
Avanti Finance had earlier pleaded guilty to a breach of section 157L of the Reserve Bank Act, and was sentenced in the Auckland District Court yesterday after failing to maintain the required number of independent directors on its board. Avanti Finance was fined $15,000.
Reserve Bank Deputy Governor Grant Spencer said it was important that non-bank deposit takers, of which Avanti Finance is one, are familiar with their directors’ outside interests.
“Sound governance is a key aspect of the non-bank deposit taking regulatory regime. The requirement to have two independent directors is pivotal in strengthening this sector and avoiding the issues experienced by some finance companies in recent years. As a result, it is important that non-bank deposit takers are aware of their directors’ interests, to ensure they meet the Reserve Bank requirements to have two independent directors on their boards,” Mr Spencer said.
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