Finance frontman Arkinstall resigns

Vance Arkinstall. Photo / Supplied

Vance Arkinstall has resigned from his job fronting the investment company and insurance lobby group as he prepares to fight criminal charges for his part in allegedly misleading investors in a failed finance company.

Arkinstall, who was the chief executive of the Investment Savings and Insurance Association (ISI), is one of six directors of Dominion Finance Group and sister company North South Finance Group facing criminal and civil charges brought by the Securities Commission.

His resignation from the ISI takes effect from the end of the month.

In a statement issued this morning Arkinstall said: "Whilst I am disappointed to be leaving ISI after 10 years as CEO, the recent announcement that I am to face charges resulting from my role as an independent director of Dominion Finance means that it would not be appropriate that I continue as CEO of ISI, therefore resignation is the proper course".

Arkinstall said ISI had established itself as a leader with a strong reputation within the financial services industry.

"I am proud to have been part of that success and would not wish to allow my personal situation to damage that position."

The other directors facing criminal and civil charges are Rick Bettle, Terry and Ann Butler, Paul Forsyth and Robert Barry Whale.

The charges relate to offer documents and advertisements published by both companies, which the Commission alleges were misleading.

The Dominion Finance Group went into receivership in September 2008, owing $176.9 million to about 5900 investors.

North South Finance followed suit last week, a day after the Securities Commission announced it had laid civil and criminal charges against the directors.

It has paid back about $54 million of the $102 million owed to investors.

Association chairman Sean Carroll earlier described the situation as "tricky".

"As an association, trust and confidence is a big thing. It's pretty hard to maintain with this sort of thing hitting the papers," he said of the charges.

Carroll said Arkinstall was aware of the importance of retaining public confidence in the investment, savings and insurance sector.

"Vance wanted to preserve the ISI's integrity and ensure it continued to operate without being affected by the unrelated charges he is facing, regardless of his intentions to defend the charges," he said.

The ISI says discussions held between the ISI Board and Arkinstall had been forward thinking and amicable.

"While we would have preferred to have reached an outcome earlier, we also believed the process should not be rushed given the severity of the situation and the implications on the professional interim career of a longstanding chief executive," he said.

The criminal charges carry a maximum five-year jail term or a fine of up to $300,000. The civil proceedings carry fines of up to $500,000 for each of the directors.

The case is due in court at the end of the month. The directors are expected to defend the charges.


This story has been corrected from an earlier version. The Investment Savings and Insurance Association represents investment companies, not financial advisors.