Financial Markets Authority stops Asset Finance from raising money from the public

Financial Markets Authority stops Asset Finance from raising money from the public

The Financial Markets Authority (FMA) has stepped in to prevent Whakatane-based Asset Finance, which offers personal and business loans ranging from NZ$400 to NZ$400,000, from raising money from the public.

In a notice of interim order  the FMA says it has made orders under the Securities Act prohibiting the allotment of securities under both Asset Finance's registered prospectus for the issue of debenture stock, and under the company's investment statement, also for the issue of debenture stock.

In addition the FMA says it's considering whether to exercise its powers under sections 43F and 43G of the Securities Act to cancel the prospectus and prohibit the investment statement on the grounds that;

"The investment statement is likely to deceive, mislead or confuse with regard to a particular that is material to the offer of securities to which it relates; and the registered prospectus is false or misleading as to a material particular or omits any material particular."

The interim order, made on April 13, will stay in place until May 4 unless revoked before then.

Asset Finance's prospectus shows NZ$17 million worth of debenture stock on issue - at March 31, 2011 - and NZ$1 million worth of capital notes. The company was founded by managing director Clive George and has branches in Auckland, Masterton, Palmerston North, Wellington, Rotorua, Wanganui, and Tokoroa.

Asset Finance's trustee is Covenant Trustee Company and its auditor is Grant Thornton.


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