tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, December 5th, 7:44PM

Investments

rss
Latest Headlines

SCF woes sparked Hubbard complaint

South Canterbury Finance's woes sparked the initial complaint that led to Allan Hubbard and some of his interests being placed into statutory management.

Friday, September 24th 2010, 4:19PM

"With all the problems of South Canterbury Finance we are worried about our investments," the complainant said in a February 28 letter to the Registrar of Companies. A heavily censored copy of the letter was released by the Securities Commission to the Hubbard Support Team, which is fighting to clear his name. The author wasn't indentified.

Aorangi Securities never offered an investment statement or prospectus, failing to meet regulatory requirements, the complainant said.

"How do these entities continue to operate without becoming a focus of your organisation's enforcement arm?"

Around the time the letter was sent, South Canterbury flagged a $1.1 billion dollar hole in its maturity profile as debentures came due before the guarantee expired.

Hubbard and a number of his business interests were placed under statutory management in June, and resulted in the Serious Fraud Office announcing an investigation into the octogenarian's affairs. South Canterbury, which has since been placed in receivership, escaped the statutory managers, Richard Simpson and Trevor Thornton, of Grant Thornton.

They flagged more concerns about Hubbard's Aorangi Securities and HMF in their second report, issued last month, saying the former was too exposed to the dairy sector and the latter was over-valued by at least 25%. Hubbard disputes the findings.

Securities Commission senior solicitor Natalie Muir defended the censorship of the letter in an email to the lobby group, saying the deleted information contained details which the regulator may investigate, and was to protect the right to anonymity for the investor. It was also to avoid prejudicing future legal action.

South Canterbury Finance was sent to the receivers last month after it failed to bring in a new investor, and prompted the government to write a $1.78 billion cheque after the retail deposit guarantee was triggered.

« Rates Round Up for Sept 22[New offer] TrustPower bonds »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    2 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    3 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    3 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    3 days ago by Pragmatic
  • DRS member or not - client care remains advisers’ responsibility
    “FAPs are members of DRS too. Substitute “adviser” for “FAP” and the story is actually a lot more accurate. If...”
    4 days ago by Aggressively_passive
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com