News Round Up

Regulators look at super funds, Dominon Finance IPO, FPIA convention offer, Bad brokers target Kiwis, More Metropolis bad news.

Sunday, June 13th 2004, 10:12PM

Both the Commerce Commission and the Securities Commission are planning to meet with the Consumers’ Institute this week to listen to allegations fund managers have been misleading investors over returns.

Securities Commission counsel Liam Mason has confirmed a meeting is taking place, however he would not comment on what he expected to happen or the purpose of the meeting.

Commerce Commission director of Fair Trading, Deborah Battell, was likewise circumspect saying that it was a preliminary meeting to hear what the institute had to say.

She says it was the commission’s job to “investigate allegations” when they are made. She also indicated the commission was interested in the issue from a Fair Trading point of view. The report has been roundly criticised by the funds management industry. [MORE]

Dominion Finance to raise $15 mill
Dominion Finance Holdings has that it plans to raise $15 million to fund further growth through an Initial Public Offering.

The company is the parent of Dominion Finance Group which has been in business for 50 years, tracing its origins back to Canterbury Advances in 1954. The business has been owned by Broadlands Dominion Group, Fletcher Challenge Group and NZ Guardian Trust before being acquired by interests associated with Terry and Ann Butler in 1987.

The business has been transformed from contributory mortgages and consumer and business finance to a specialist lender providing short term funds particularly for business loans, working capital and for residential and commercial property ownership and development. [MORE]

Kiwis target of bad brokers
New Zealanders have lost at least $20 million to rogue brokers offshore in the past couple of years, the Securities Commission says.

It says there has been a rise in cold callers from overseas peddling investment scams and has added five more names to its list of 118 people or firms who target New Zealanders.

"We are receiving several complaints a day about unsolicited phone calls," the commission's director of enforcement Norman Miller says.

More Metropolis bad news
Latest projections show that bondholders in the Metropolis development will get less than half their money back.

Currently they are due $31 million (the original capital plus interest), but are likely to only see around $10 million of that owed.

The trustee, Trustees Executors, wrote to bondholders in Pacific Properties (Metropolis) recently and told them they would get a further 10c in the dollar distribution, taking the total up to 35c in the dollar so far.

Special FPIA Conference Offer
Register for the Financial Planners and Insurance Adviser Conference online and save.

Also if you enrol before June 21 you will benefit from a lower registration fee of $595.

Good Returns is pleased to support this year’s Success Forum, which is being held in Auckland from July 21-23.

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