FMA warns on bank notes
A number of issues have taken place over recent months, including Kiwibank’s perpetual capital notes and ASB’s unsubordinated debt securities. In the past 12 months, about $1 billion has been raised through bank capital notes in New Zealand.
Advisers suggested it was likely more banks would issue notes as they looked to bolster their capital.
The FMA said it had noticed the increase in the number of banks offering capital notes but consumers needed to be sure they understood what they were investing in.
"These types of products are not like a bank term deposit. We want to ensure consumers are not just basing their investment decisions on an advertised high interest rate and the fact that a household name is offering them,” said the FMA’s director of primary markets and investor resources, Simone Robbers.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] Research shows KiwiSaver is a key issue in the election; GRTV Special looks at what's on offer.](https://goodreturns.publit.io/file/c_fill,w_300,h_200/36b7de93-7b53-4a06-855a-4a8f4009a280.webp)
