Officials of the Reserve Banks were surprised when they started studying and monitoring the systems of which South Canterbury Finance and Allan Hubbard, have been working. This study was done during the second half of 2009.

The documents that were released by the apex bank officials have shown that they had frequent discussions with the Securities Commission.

In an email sent by the Reserve Bank manager, Andy Woods, he had briefly outlined the things to Kathryn Rogers of the Securities Commission about the scenarios that will come up when non bank deposit taking institution (NBDT)'s management is considered.

He said that it is the responsibility of reserve Bank to study and implement the new prudential regime.

Also what comes in their array of duty is the NBDT sector. He said that the related party transactions have a very distinctive feature of the SCF and also that the business model called A3 is what beggars belief.

He noted a report made by KordaMentha where it was asked that the loan book of South Canterbury

should be assessed. The same had been the request of Treasury and the BNZ as well.