Media Release
17 December 2013
Commerce Commission to lay charges over swaps
Having written to the Commerce Commission last November and encouraged members affected by interest rate swaps to
contact the Commerce Commission, Federated Farmers welcomes the Commission’s decision to put the matter before the
Courts.
“Having fielded calls from concerned farmers over recent years, we formally wrote to the Commerce Commission in November
2012 requesting that they look into the selling of interest rate swaps,” says Bruce Wills, Federated Farmers President.
“Now we have the news that the Commission has found there is a case to be answered under the Fair Trading Act. Legal
proceedings are to be filed in the New Year against ANZ Bank, ASB and Westpac.
“Some of the debt instruments sold to farmers have been highly complicated to say the least. In both 2009 and 2010, we
mentioned problems with swaps in various submissions, including to the Opposition’s Banking Inquiry and the Review of
the Banking Code of Practice.
“This was why we felt the Commerce Commission was best placed to properly investigate them and its decision today
vindicates this faith.
“The Commission looked at swaps from the perspective of the Fair Trading Act 1986. This includes misleading and
deceptive conduct in trade such as false and misleading representations.
“In this case the Commission is looking at potential breaches of sections 9, 11 and/or 13.
“Federated Farmers supports the Commerce Commission in wanting to hear from farmers adversely affected by swaps. They
can contact the Commission on 0800 943 600.
“We believe the case, when it comes before the Courts, will help to resolve what has been controversial to say the
least. It will also be a good opportunity to remind the entire financial industry of its wider obligations,” Mr Wills
concluded.
ENDS