10 May 2002

Money Managers Banned As Contributory Mortgage Broker

The Securities Commission has prohibited Money Managers Limited from offering interests in contributory mortgages to the public for subscription. The ban is for twelve months.

The ban follows the Commission’s inquiry into the contributory mortgage over 1 Parliament Street in Auckland.

The inquiry concluded that Money Managers Limited acted as a contributory mortgage broker by offering interests in the Parliament Street mortgage for public subscription. Money Managers had breached the Contributory Mortgage Regulations by not being registered as a contributory mortgage broker.

The Commission met with Money Managers again yesterday after giving Money Managers seven days notice as required by law.

“It is in the interests of investors that contributory mortgage brokers be registered and that contributory mortgages are offered in accordance with the law,” Commission Chairman Jane Diplock said.

“It is important that investors and market participants know that securities law will be enforced and that if the law is breached appropriate sanctions will follow,” Jane Diplock said.

…ends …