BUSINESSDESK: Pyne Gould Corp and its trustee unit Perpetual Group are weighing up their options after the High Court ruled the Financial Markets Authority's raid for information was unlawful, though the market watchdog didn't have to return the information.
The High Court decided the FMA's notices to obtain information from Perpetual Trust were unlawful, Pyne Gould says in a statement to the exchange. The company is considering "the possible implications of the judgment".
In a separate statement, the FMA says the ruling let it keep the documents it obtained, with its notice deemed unlawful due to the request information be provided "immediately". Its investigation into Pyne Gould is continuing.
"FMA accepts the judgment and welcomes the clarification from the court on how it expects FMA to use this power," chief executive Sean Hughes says.
"The circumstances of this case required FMA to act urgently in the public interest, and that action has resulted in the repayment of a substantial loan which is in the best interests of investors."
The FMA launched an investigation into Pyne Gould's Perpetual unit after the statutory supervisor, Trustees Executors, referred its concerns about related party loans to the regulator.
The court has since ordered independent observers keep tabs on Perpetual's plan to liquidate the $56.2 million fund and internalise a separate fund.
PGC froze repayments to investors in the pair of funds after its dispute hit the headlines, and sparked a surge in redemption requests.
Pyne Gould's shares were unchanged at 30 cents, having shed 12% this year.
More than 75% of the company is held in a vehicle controlled by managing director George Kerr and US hedge fund Baker Street Capital.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Light rail the winner in latest Auckland Transport turnaround
- Auckland council puts debt issuing plans on ice over Brexit concerns
- Uber launches free Pandora personalised music for its Kiwi, Australian and US drivers
- Brexit aftermath: disdain, the elites, and the warning for conservative parties everywhere
- Companies Office rejects NZ First complaint over Silver Fern deal
Most listened to
- BNZ's Jason Wong says the movements in the currency market last week were some of the biggest in history
- CBL's Peter Harris on uncertain times in the UK insurance industry
- Govt performing an awkward political U-turn on foreign trusts. Rob Hosking with John Shewan and John Key
- Trade Minister Todd McClay says plans for an FTA with the EU will not be hindered by the Brexit
- Oxford University academic Malcolm McCulloch predicts the imminent death of the internal combustion engine