FMA issues first stop order against Green Gardens Finance Trust taking public deposits
The stop order has been issued because the company's website included an advertisement for an offer of debt securities that don't comply with the act.
UPDATED: UPDATE: FMA issues first stop order against company taking deposits for Auckland property investment
The Financial Markets Authority has issued its first stop order under the Financial Markets Conduct Act against Green Gardens Finance Trust (GGFT) and is warning people to be wary of doing business or depositing money with the company.
The stop order has been issued because the company's website included an advertisement for an offer of debt securities that don't comply with the act and has been made without lodging a product disclosure statement and without a trust deed as required under the law.
Green Gardens Finance Trust, which changed its name from Southpac Finance Trust in February, is prevented from offering, issuing, advertising and accepting applications and contributions for debt securities.
The stop order followed concerns about the website ggfinance.co.nz and the offers of debt securities advertised on the website. The website now just has a "coming soon" stamp on its home page.
The FMA can issue a stop order under the act if someone offers investments without complying with the law.
"Green Gardens Finance is offering investments illegally and this stop order requires the company to comply with the relevant laws and warns people not to give money to the company," FMA's director of regulation Liam Mason said in a statement. "It is an offence to fail to comply with a stop order."
Hsin-yun Li is listed as the sole director of Green Gardens Finance Trust and the shareholders are listed on the Companies Office website as being Gang Wang, Yan Zhang, and the North Harbour Trustee Company, which is owned by Michael Newdick and Michael Robinson. Stephen Grey resigned as a director of GGFT in December last year.
The company traded as Southpac Finance Trust until 2007 and then was restored on to the companies register in September last year.
(BusinessDesk)
Fiona Rotherham
Mon, 27 Jul 2015
Mon, 27 Jul 2015
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FMA issues first stop order against Green Gardens Finance Trust taking public deposits
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