Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Securities Commission prohibits ads

13 October 2006

Securities Commission prohibits ads for Hanover’s
Protected Investments Global Growth Fund

The Securities Commission has prohibited some advertisements for a new unit trust offered by Hanover Funds Management Limited because they are likely to mislead or confuse investors about the potential returns.

The prohibited advertisements for Hanover Protected Investments Global Growth Fund units are those which say the investment

 has a 10% potential return; or

 has a 50% potential return without clearly stating that the possible returns on the investment at maturity are 50% or zero.

The investment is structured so that at the end of five years investors will receive their capital back. The return is to be either 50% of the amount invested, or nothing.

“The way the returns on these securities are structured is unusual,” Chairman Jane Diplock says. “Therefore they should be described clearly and precisely to avoid being misleading or confusing. The prohibited advertisements are not sufficiently clear and precise.”

Hanover has cooperated with the Commission and agreed to write to all investors who subscribed to the fund to make sure they correctly understand the returns under the fund. They will be offered their money back.

The Commission considered the advertisements were misleading or confusing because:

- Investors may think that the 10% figure means that they would receive a return of 10% each year. This is not the case. There is no annual return for this investment.

- Investors are likely to believe from the advertisements that the return is potentially greater than is actually the case. Even if they receive the 50% return at the end of five years, this equates to less than a 10% annualised return on the investment. They may receive zero return.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>