Investors entitled to refunds but won't get help
The Securities Commission is telling investors they are welcome to demand a refund, plus interest, from finance companies that didn't offer a registered prospectus, though the regulator won't do it for them.
Commission investigations into finance companies have found that investors are entitled to a refund of their principal, plus interest where they were offered securities without a registered prospectus, and those who didn't receive an investment statement may also be able to seek a refund.
The regulator says investors can take action against both the issuers and the directors personally for the recovery of their investment, though the success of any action will depend on the companies' ability to meet any liability.
The Securities Commission said it's unable to take action for investors, and recommends they seek legal advice. It successfully prosecuted Sharon Day and QED Limited over investment offers without a registered prospectus or investment statement, and has filed similar charges against the directors of Five Star Debentures Nominees.
The regulator is continuing to investigate other issuers that may have breached the Securities Act in this manner.
KiwiSaver Budget changes still encourage investment
Changes to KiwiSaver addressed in the Budget are "generally positive" and continue to encourage retirement savings, according to Workplace Savings.
"It is very pleasing to see that none of the tax incentives around KiwiSaver have been tampered with," Workplace Savings chairman David Ireland said.
The government's moves included lowering tax rates for investment products, including KiwiSaver, superannuation funds and PIE funds.
Combined with the rise in GST, Ireland says they will produce a good incentive for people to continue saving for their retirement.
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