Reports filed with the Companies Office say the fund raised $1.8 million from investors in 2008, of which $905,214 had been returned by the end of March last year. The $1.8 million was not allocated to capital, as less than $4.75 million - the minimum amount required for the offer to proceed - was raised.
Almost $900,000 had yet to be repaid as at March 31 last year.
As well, close to $580,000 of interest has accrued on investors' funds by March 31 last year.
The FMA also said today it had concerns about SPI and "apparent failures" to comply with financial reporting requirements, hold investors subscriptions on trust, repay subscriptions owed to property fund investors and to keep them adequately informed about performance of their investments.
In response to the FMA's worries, the directors had agreed to a number of undertakings.
According to the FMA these are:
• not to act as a director, promoter or CEO or CFO (or equivalent position) of any companies that seek or hold investment funds from the public for five years
• to repay outstanding subscriptions owed to investors in SPI Property Fund Limited
• to ensure the filing of audited financial statements for SPI Capital Limited for the years ending 31 March 2011, 2012 and 2013
• not to participate in the business, including management, of the SPI entities.
The FMA's director of enforcement, Belinda Moffat, said the undertakings were a "pragmatic and effective way" to meet the regulator's concerns.
"This outcome provides a process to repay investors, responds to past misconduct and also provides protection to the market and investors. Keeping investors updated by providing financial statements is a key part of putting customers' interests first, maintaining their trust and enabling investors to make informed financial decisions."
As revealed by the Herald yesterday, Alcock and Knight have admitted three charges for failing to file financial statements and will be sentenced next year.
