Pyne Gould mulls options after court decides FMA raid unlawful

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6274 0.0000 0.00%
AUD 0.9084 0.0000 0.00%
EUR 0.5626 0.0000 0.00%
GBP 0.4136 0.0000 0.00%
HKD 4.8670 0.0000 0.00%
JPY 74.6930 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1120.9 -3.100 2015-09-04T00:
Oil Brent 50.5 -1.030 2015-09-04T00:
Oil Nymex 46.6 -0.690 2015-09-04T00:
Silver Index 14.5 -0.160 2015-09-04T00:

Indices

Symbol Open High Last %
NZX 50 5569.7 5573.0 5569.7 -0.41%
NASDAQ 4670.4 4712.7 4733.5 -1.05%
DAX 10216.2 10216.2 10317.8 -2.71%
DJI 16371.8 16371.8 16374.8 -1.66%
FTSE 6194.1 6194.1 6194.1 -2.44%
HKSE 21158.9 21174.9 20934.9 -0.45%
NI225 18312.1 18312.1 18182.4 -2.15%