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FMA says 16 finance companies under investigation, six off the hook

The Financial Markets Authority (FMA) has confirmed it is investigating 16 collapsed finance companies involving an estimated $3.45 billion of losses.

Wednesday, September 14th 2011, 1:01PM 2 Comments

The regulator also identified six cases it will not pursue at this stage, saying further investigation "would not be in the public interest because no law breaches have identified."

FMA chief executive Sean Hughes said the 16 ongoing investigations were Allied Nationwide finance, Boston Finance, Equitable Mortgages, Hanover Capital, Hanover Finance, Kiwi Finance, LDC Finance, Mutual Finance, OPI Pacific Finance (formerly MFS Pacific Finance), Propertyfinance Securities, South Canterbury Finance, St Laurence, Strategic Finance (including Strategic Nominees), Structured Finance, Viaduct Capital and Vision Securities.

Hughes said the FMA decisions were consistent with the recently released Enforcement Policy and the result of a review since the regulator began operating.

"Amongst the cases remaining under FMA's scrutiny are some involving large numbers of investors at risk of significant or potential loss, in which there is information suggesting unlawful behaviour, and where there is a need to send a clear regulatory signal to the markets."

Hughes said the 16 ongoing investigations are at different stages of completion, with five close to the point at which recommendations will be made on civil and/or criminal proceedings, six in which FMA staff have a significant body of information under review with the aim of completing investigations as soon as possible and the remaining five, where the FMA does not have enough information to decide whether to continue or close the investigation.

The six cases the FMA has decided it will not pursue involve All Purpose Finance(trading as St Kilda Finance), Direct Property Investments, Finance & Leasing, Geneva Finance, Mascot Finance and Strata Finance.

Hughes said the FMA had not found any breaches in the six cases and concluded there was no public interest in continued investigation.

In the case of Rockforte Finance, the FMA said its investigation had been closed as the matter had been referred to the Serious Fraud Office (SFO), though the FMA may reopen its investigation if the SFO does not proceed with a prosecution.

Tags: finance companies

« SFO, FMA lay a swag of criminal charges against Belgrave directors[Comment] Telecom offers retail bond investors an inferior deal »

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Comments from our readers

On 20 September 2011 at 10:08 pm Thomas Green said:
How can you take years to tell us there was fraud and corruption, when it's plain and obvious to all. Why not find where the money went, in banks around the world and get it returned to all the innocent pensioners who live in poverty now??????
On 27 September 2011 at 10:49 am s baird said:
what about Dominion Finance - they definitely lied to McDouall Stuart and the investors re secured/unsecured status. This is definitely fraud - hopefully SFO just haven't got to them yet
Commenting is closed



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