News round up

Investors entitled to refunds but won't get help
The Securities Commission is telling investors they are welcome to demand a refund, plus interest, from finance companies that didn't offer a registered prospectus, though the regulator won't do it for them.  

Commission investigations into finance companies have found that investors are entitled to a refund of their principal, plus interest where they were offered securities without a registered prospectus, and those who didn't receive an investment statement may also be able to seek a refund.  

The regulator says investors can take action against both the issuers and the directors personally for the recovery of their investment, though the success of any action will depend on the companies' ability to meet any liability.  

The Securities Commission said it's unable to take action for investors, and recommends they seek legal advice. It successfully prosecuted Sharon Day and QED Limited over investment offers without a registered prospectus or investment statement, and has filed similar charges against the directors of Five Star Debentures Nominees.