A likely conflict of interest involving Securities Commission member Simon Botherway is being investigated by the Ombudsmen's Office.

Mr. Hubbard had established two additional trusts last week which were placed into statutory management and yesterday similar action was taken with a couple of more companies associated with Mr. Hubbard.

Mr. Hubbard holds major stakes in South Canterbury Finance (SCF). SCF is not a member of the statutory management order.

Post the first statutory management declaration, Mr. Botherway had reportedly declared that he might have potential interest in issues linked directly to company SCF due to previous business agreements between his brother and the company.

According to the commission’s statement, it was content that Mr. Botherway’s interest did not conflict with Aorangi Securities, Mr. or Mrs. Hubbard, or the charitable trusts.

However, there are suspicions of a potential conflict. Therefore an investigation has been proposed so that any potential conflict is disclosed.

The commission chairman Jane Diplock has been approached to give a report and other related information regarding the complaint from Mr. Carruthers and others.

Mr. Botherway happens to be the chairman of the Financial Markets Authority Establishment Board which is making way for a new integrated financial markets regulator.