Kookmin makes enforeable undertaking
Kookmin Banks has got into trouble with the Securities Commission for offering term investments without an investment statement.
Friday, November 19th 2004, 12:49PM
The Securities Commission has accepted enforceable undertakings from Kookmin Bank and its directors.
The undertakings relate to offers of term investments which had been made without an investment statement in breach of the Securities Act.
Kookmin Bank is a Korean bank with a branch office in New Zealand. This branch office is a New Zealand registered bank.
Kookmin had been offering term investments to the public without investment statements.
These term investments are debt securities under the Securities Act. Kookmin ceased offering debt securities to the public when it became aware of the breach.
Kookmin has informed investors that the securities were allotted in breach of the Securities Act, and has advised them of their rights under the law.
"Banks that offer securities to the public need to be fully aware of their obligations under securities law," commission chairman, Jane Diplock says.
"Overseas banks with branches in New Zealand must comply with all of the local securities law requirements. The board must take responsibility for ensuring this."
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