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


Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>


Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing


House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>