ComCom slams Forbarr over Credit Sails
The Commission concluded that the parties involved in the promotion of the products, including Forsyth Barr and Calyon Hong Kong, likely breached the Fair Trading Act.
However, it reached a $60 million settlement with the companies instead of prosecuting as it believed this would return more to investors, many of whom are elderly.
Because Calyon is not a New Zealand company, the Commission had no legal power to force it to take part in the investigation; therefore, it agreed to take evidence from Calyon on the basis that it was confidential.
But it was able to publicise email correspondence by Forsyth Barr showing it pushed back against recommendations by both Calyon to tone down the marketing of the product.
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