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


Prudential Mortgage Limited admits breaching

26 November 2004

Prudential Mortgage Limited admits breaching enforceable undertaking

Prudential Mortgage Limited has failed to comply with the terms of an enforceable undertaking offered to the Securities Commission in March 2004. Prudential is a Christchurch based contributory mortgage broker.

The enforceable undertaking resulted from Prudential’s advertising for interests in a contributory mortgage in 2003. Prudential undertook to have all future advertising for contributory mortgages prepared or reviewed by appropriate professional advisers.

However, the company’s recent advertising of another contributory mortgage has been brought to the Commission’s attention. Prudential has accepted that this advertising did not comply with securities law disclosure requirements. In this case Prudential has given further information to contributors and offered to refund contributors’ money.

Prudential has also admitted that it has been breaching the enforceable undertaking offered to the Commission in March 2004 by not having its advertising prepared or reviewed by professional advisers. Prudential said it mistakenly believed that it was not yet required to comply with the Undertaking. However all enforceable undertakings accepted by the Commission are immediately in force.

The Commission understands that Prudential is now complying with the enforceable undertaking by having its advertising reviewed by experienced securities lawyers. In addition, Prudential will provide regular compliance reports to the Commission.

“When contributory mortgage brokers are raising funds from the public, the Commission expects high standards of compliance with all securities law disclosure requirements”, Commission Chairman, Jane Diplock said.

“The Commission appreciates that the contributory mortgage regime may be complex. To achieve the appropriate high standards of compliance expected contributory mortgage brokers may require assistance from lawyers specialising in securities law.”

Prudential’s enforceable undertaking is on the Commission’s website,


© Scoop Media

Business Headlines | Sci-Tech Headlines


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>

Commerce Commission: Invites Feedback On Its Initial Views Of Wellington Airport’s Pricing Decisions

The Commerce Commission is inviting feedback on its initial views, released today, about Wellington Airport’s pricing decisions for specified airport services, such as aircraft parking or airfield and passenger terminal charges, for the period 1 April 2019 to 31 March 2024... More>>

Government: Lower Card Fees On Way For Business, Consumers

A Bill to help lower the fees charged when credit and debit transactions are made, will save New Zealand businesses around $74 million a year... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>

DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>

Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>