News Round Up

Charges laid in contributory mortgage case, Colonial FS stars, UDC's new rates.

Sunday, February 11th 2001, 4:08PM

The Companies Office has laid civil and criminal charges against three people involved in the Reeves Moses contributory mortgage saga, according to NBR.

The charges, under the Securities Act and the Securities Act (Contributory Mortgage) Regulations, relate to $23.8 million worth of contributory mortgages Reeves Moses put its clients into in 1998.

Brisbane-based Harts Group, which bought Reeves Moses just over a year ago, said previously that a pre-listing internal audit revealed that "a number (of the mortgages) contained breached of the Contributory Mortgage regulations, some of which could have resulted in a loss to contributors."

Harts and the planning firm's former owner, ASB Bank subsidiary Sovereign, spent $23.8 million last year buying investors out of the mortgages.

Colonial First State stars

Morningstar has reinstated the star it took off Colonial First State Investments (CFSI) in May last year.

Back then the research house dropped CFSI's rating from four stars to three following ownership changes and a decision to discontinue its Wellington-based Australiasian equities portfolio manager role.

Colonial's new owners, Commonwealth Bank of Australia, has kept CSFI distinct and run autonomously.

Morningstar says the firm has a competent team working to regenerate and consolidate its business.

New UDC rates
UDC has made some changes to its latest deposit rates.

Its Secured Term Investment rate for one year is 6.05%, and its five year rate is 6.50% (min $25,000).

The Telephone Call Account for sums of more than $100,000 is 6.15%. The rate for $20,000 to $100,000 is 6% and for amounts between $5,000 and $20,000 UDC is paying 5.75%.

« Tower stands out

Get your tax questions answered online »

Special Offers