Sucurities Commission Ruling

News Release

Enforceable Undertakings By Secure Property Investments Limited And Mr M.R. Alcock

The Securities Commission has accepted enforceable undertakings from Secure Property Investments Limited (SPI) and its director, Mr M.R. Alcock.

The Commission received a complaint about the offer of interests in a proportionate ownership scheme for a property at Whangarei. SPI was the manager and promoter of the scheme.

Normally such a scheme requires an investment statement and a registered prospectus. However, a class exemption granted by the Commission allows such an offer to be made using an Offeror’s Statement. People who choose to use the exemption must comply with the conditions of the exemption. The conditions are designed to ensure that investors are given all the information they need to make an informed decision on whether or not to invest.

The Commission was concerned that SPI’s offer document did not comply with the conditions of the exemption.

SPI acknowledged that the offer of interests in the scheme may not have met certain legal obligations.

SPI voluntarily undertook to withdraw the offer document and advertising for the scheme from the market. SPI also undertook to return all application funds that it had received.

To confirm these actions SPI and its director offered these undertakings: the Offeror’s Statement will not be distributed and will not used again; all offers of securities made to the public will comply with the law; and all subscription money received for the property scheme will be returned to subscribers plus interest (if applicable) as specified by the Securities Act 1978.

The Commission has accepted the undertakings. These undertakings are enforceable by the Court.

ENDS

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