1 Jul 2019

Collapsed insurance company on the offensive against RBNZ

7:09 am on 1 July 2019

The directors of collapsed insurance firm CBL have upped the ante on their campaign against the Reserve Bank for having their business liquidated, ahead of an independent report on the regulator's actions.

The Reserve Bank of New Zealand

The Reserve Bank of New Zealand Photo: RNZ / Alexander Robertson

Peter Harris and Alistair Hutchison booked full page advertisements in the Weekend Herald, Dominion Post and the Australian Financial Review over the weekend, with a list of 16 questions they wanted answered.

The newspaper adverts questioned the Reserve Bank's independence and suggested the release of a report into the central bank's handling of CBL Insurance had been delayed.

"No directors, executives or professional advisors of CBL were interviewed for the report - it will be based entirely on information and opinions from inside the RBNZ," the advert in the Weekend Herald said.

The Reserve Bank intended to release the findings of the independent review on Wednesday.

The regulator fought to liquidate CBLI at the High Court in Auckland for an entire year, accusing it of breaching its solvency standards for five years and impropriety by directors.

Over that time the directors failed to present a feasible restructuring plan to save the business.

The parent company of CBLI, CBL Corporation, is also in liquidation. Prior to its collapse it was valued at nearly $750 million on the New Zealand Stock Exchange.

A spokesperson for CBLI did not know how much money the advertisements cost.

Peter Harris was overseas on Sunday and could not be contacted.

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