Mortgage scheme ban for Money Managers

By Phil Boeyen, ShareChat Business News Editor

Friday 10th May 2002

Financial advisor Money Managers Limited has been banned for 12 months from offering interests in contributory mortgages to the public for subscription.

The Securities Commission has slapped on the ban following its inquiry into the contributory mortgage over 1 Parliament Street in Auckland.

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

The Commission met with Money Managers yesterday after giving the advisor 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," says Commission chairman Jane Diplock.

Ms Diplock says 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.

Money Managers announced last week that it had arranged refinance for the Parliament St apartment and carpark project so contributory mortgage investors could receive their money back in full with interest.

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