About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, February 19th, 5:17PM
rss
Latest Headlines

Oxford Finance announces new funding arrangements

Oxford Finance Corporation has announced that from April 1, 2011, it will cease to offer its debentures to the public as it no longer needs to attract external investors to fund its finance operation.

Monday, March 14th 2011, 3:33PM 1 Comment

Instead, BNZ will replace public investment for the purposes of funding the Oxford Finance lending business.

Oxford Finance executive director John Yeoman said the decision to move away from offering debt securities was not taken lightly. He said the company was aware of the large group of loyal investors who had entrusted their investments with the company, some going back 23 years to its origin.

However, he said the reform in the financial services industry in the wake of the global financial crisis has resulted in a significant increase in the level of disclosure and adequacy requirements, including changes to the Non-Bank Deposit Takers regulations.

"While these reforms are a positive thing for investors, it does come at a considerable additional cost to organisations offering debt securities to the public," he said.

"Unfortunately, for small to medium deposit takers, these increased compliance costs can have a significant impact on profitability."

As part of the larger Electra Group - which has assets of more than $269 million - Oxford Finance has been able to secure more favourable lending arrangements.

"Our ownership structure provides the company with access to business opportunities that many similar sized finance companies simply don't have. The opportunity to significantly lower compliance costs and free up capital for further growth opportunities was the right decision to make from a commercial perspective."

"Aside from the change to our funding arrangements, all other business will continue as normal," Yeoman said.

« Geneva seeks debt-for-equity swap to stave off receivershipS&P cuts Geneva's rating »

Special Offers

Comments from our readers

On 20 March 2011 at 10:20 am D W Pedley said:
Brings into question the worth of the remuneration being paid to Executives within the Electra Group
Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 1.75  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

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