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
- MARKET CLOSE: NZ shares fall, A2, Xero down as investors take profit
- Fonterra targets doubling of China revenue within five years
- Dunne warns of 'consequences' if Maori Party supports RMA reform
- Eroad takes a knock in Oregon, but on-track for full-year
- UPDATED: Fonterra shareholders evenly split on shrinking board
Most listened to
- Trilogy International CEO Angela Buglass on tripling her profit
- Eroad CEO Steven Newman talks about his company's revenue increase
- What do the latest terrorism attacks in Mali and Israel mean? Nathan Smith discusses the latest foreign affairs news
- NZ Windfarms departing director Michael Stiassny speaks out after board exit
- James Mayo talks about SOS Hydration's growth plans after Snowball offer
- Michael Wood on whether he would run in Mt Roskill
- SAFE's Abi Izzard quizzed over protest of a caged hen operation at Pukekohe
- Nevil Gibson talks about Editor's Insight on the planned $US150 million merger between Pfizer and Allergan
- Taupo Beef’s Mike Barton on how to extract sustainable profit from farming
- Will the government lose on RMA reform? Rob Hosking outlines the PM's speech
- How could bookmakers recoup $16 million? Racing Board chief executive John Allen explains
- Nevil Gibson breaks down the latest aviation news