FMA backed off Jock Hobbs investigation

A Financial Markets Authority investigation into director Jock Hobbs' involvement in Strategic Finance's collapse stopped last June because of his deteriorating health.

Mr Hobbs, a former All Black and director of Strategic Finance, died on March 6 after a long illness.

NBR Online understands Mr Hobbs’ illness could have encouraged the FMA to hit the brakes on its Strategic Finance investigation.

That included whether Mr Hobbs, along with other directors, had committed a breach of the Securities Act.

However, the FMA has just confirmed it decided to close the book on Mr Hobbs’ involvement on the basis of "medical evidence."

Mr Hobbs was informed, through his lawyers, on June 14, a spokesman said.

But the FMA’s investigation into whether other parties have committed offences under the Securities Act is continuing.

No decisions on possible charges have yet been made.

Strategic Finance was one of this country’s largest finance company failures when it was placed in moratorium in 2008, owing about $400 million to 13,000 investors.

It’s now gone into receivership and debenture holders have been returned 7c in the dollar, which equates to $26 million.

Receivers PwC said last week another small payment can be expected from property sales next month.

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