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
- NZ dollar climbs above 70 US cents on relatively upbeat kiwi fundamentals
- Snowball appoints head of growth capital
- Xero makes a special alteration to rival's billboard
- Three fintech start-ups pitch for funds at end of Kiwibank-sponsored accelerator
- MARKET CLOSE: NZ stocks slip as Manchester concert attack drags on investor sentiment, Comvita drops
Most listened to
- Business leaders on Budget 2017: Failure to set up any significant public-private partnerships for infrastructure is "really disappointing," says Paul Glass
- Serko’s Darrin Grafton says the company can use its SME platform to expand globally
- Trump travels overseas selling jobs as North Korea continues to lash out, on Trump’s Beltway with Nathan Smith
- Nick Shewring says co-working attracts "awesome people doing cool things"
- NBR Radio: best of the week ended May 19, with Grant Walker