BT seeks to rectify New Zealand gaffe
BT Financial Group has contacted up to 50,000 New Zealand investors to notify them of its intention to return to the High Court in Wellington and hopefully conclude an ongoing saga that began after the funds management group breached NZ Securities Commission requirements.
The issue related to a number of BT funds that had not issued prospectuses to the Commission despite the requirement for Australian Registered Managed Investment Schemes (ARMIS) to do so under the NZ Securities Act 1978. The oversight meant all investments were void and investors were entitled to a reimbursement of their original investment, plus a 10 per cent per annum interest charge, as reported in Money Management in July 2003.
However, the Act was amended back in April to allow fund managers to seek ‘reflective’ validation from a Court and avoid the costly exercise of repaying investors.
“BT intends to apply to the High Court for relief orders under the new law validating all such securities, including those you hold or have held. If successful you will be restored to the position in which you would have been had BT originally complied with the Exemption Notice requirements,” BT wrote in its letter to investors.
Investors have two options. Those believing they have been materially prejudiced by the breaches can object to the relief orders, however, this must be done by Tuesday, November 9, with a requirement for investors to outline exactly how they feel they have been prejudiced.
Alternatively, investors can do nothing and the High Court will make relief orders validating the affected securities.
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