COMMITMENTS

There were no lease commitments at balance date. (2007 - no commitments).

The Panel had no capital commitments at balance date. (2007 - no commitments).

CONTINGENT LIABILITIES

There were no contingent liabilities at balance date. (2007 - no contingent liabilities).

CONTINGENT ASSETS

There were no contingent assets at balance date. (2007 - no contingent assets).

TRANSACTIONS WITH RELATED PARTIES

Transactions with other entities within the Crown
The Panel is an independent Crown entity for the purposes of the Crown Entities Act 2004. The Crown is its major source of revenue.

The Panel has entered into a number of transactions with other entities within the Crown on an arm's length basis. Where those parties are acting in the course of their normal dealings with the Panel, related party disclosures have not been made for transactions of this nature.

The Panel has a special relationship with the Securities Commission, another independent Crown entity and therefore also a related party. This is referred to in Note 3.

Transactions with suppliers
The Panel has processed a number of exemption and adviser applications from firms where a Member of the Panel was a partner in the firm. Those applications were processed and invoiced using the Panel's standard procedures.

During the year the Panel paid expenses to:

No related party debts have been written off or forgiven during the year.

KEY MANAGEMENT PERSONNEL COMPENSATION

Key personnel comprise the members of the Panel and the senior management staff.

	2008 $	2007 $
Short term employee benefits:
- Members' fees	397,275	335,473
- Senior management team remuneration	134,754	-
	$532,029	$335,473

Employee remuneration
From April 2008 the Panel commenced direct employment of three staff members. During the year, no employees of the Panel, not being Members, received remuneration and other benefits from the Panel in excess of $100,000.

BOARD MEMBER REMUNERATION

	2008 $	2007 $
D.O. Jones (Chairman)	168,808	76,625
J.C. King (Former Chairman	-	78,445
A. Lawrence (Deputy Chairman)	23,112	26,544
D.M Byrne	-	11,500
A.N. Frankham	-	11,360
C.G. Giffney	36,077	27,700
P.M. Greenwood	18,023	3,686
K.J. O'Connor	43,688	26,517
D.J. Quigg	34,294	24,460
D.M.D. Rawstorne	-	2,699
S. Suckling	43,398	28,657
K. Taylor	21,101	10,580
J.A. Waller	8,774	6,700
Total	$397,275	$335,473

SUBSEQUENT EVENTS

There were no material events subsequent to balance date that would affect the interpretation of the financial statements or the performance of the Panel. (2007 - no subsequent events)

BUDGET VARIANCES

Significant variances from budget were:

Income
Total operating income was $303,989 higher than budgeted, primarily because of the higher than expected level of recoveries from enforcement action (three section 32 meetings were held during the year) and the additional $100,000 of funding from the Crown announced in the 2008 Budget.

Expenditure
Total operating expenditure for the year was $203,799 higher than budgeted, primarily because of higher than expected expenditure on consultants and legal experts. This was necessitated by the number of enforcement meetings, the need to engage consultants to cover a staff vacancy that arose during the year and to assist with the review of the Code, and for advice in relation to the Panel's recommendations concerning schemes of arrangement.

Net operating surplus
The Panel recorded an operating deficit of $45,510 when a deficit of $145,700 had been expected. The main contributor to the lower than expected deficit was the receipt of $100,000 of additional Crown funding in the fourth quarter.

PROFESSIONAL INDEMNITY INSURANCE

The Panel has effected a professional indemnity insurance policy to provide cover for members of the Panel, employees of the Panel, and employees of the Securities Commission working for the Panel as the Panel performs its duties and carries out its statutory functions.