FMA: Investors will be disappointed
FMA announced today it has finished its investigations into four of its remaining finance company cases but will not be taking enforcement action against Allied Nationwide, Equitable Mortgages, LDC Finance or Irongate Property.
It had looked at possible breaches of the Securities Act and identified some evidence of non-compliance. But, taking into account the prospect of success and potential defences, existing returns to investors and public interest considerations, it decided not to take action.
Allied Nationwide's directors were issued with a warning letter, telling them they likely breached the Securities Act and that they should have made better disclosure to investors about the risks associated with their investments.
FMA chief executive Sean Hughes said investors would be disappointed but factors including the best use of public resources had to be weighed up.
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