The Financial Markets Authority says it ruled the late Jock Hobbs out of its investigation into Strategic Finance in June last year because of medical evidence.
Hobbs, a former All Black, passed away last week after a six-year battle with leukaemia.
He was a founder and one of six directorsof Strategic.
The property financier struck trouble in 2008 and was placed into a moratorium owing more than $400 million to 13,000 investors, many of whom were elderly.
So far secured debenture holders have received just 7c in the dollar, equating to $26 million.
Questions had been raised about whether Hobbs' estate could be included in a civil case if legal action went ahead.
But the FMA yesterday released a statement saying: "FMA decided in June 2011 to close its investigation into whether Mr Hobbs had committed a breach of the Securities Act on the basis of medical evidence then provided to it on behalf of Mr Hobbs.
"That decision was communicated by FMA to Mr Hobbs' solicitors on 14 June 2011," it said.
However, its Strategic investigation is ongoing.
"FMA's investigation into whether other parties have committed offences under the Securities Act is continuing and no decisions on possible charges have yet been made."
