Financial Markets Authority pushing for release of interim liquidation report into investment firm Chance Voight

Chance Voight director Bernard Whimp.

The Financial Markets Authority is seeking to have an interim liquidation report into Christchurch investment firm Chance Voight released by the High Court.

The report is currently subject to a suppression order, however, the Financial Markets Authority (FMA) believes there is strong public interest in it being made available to investors and the wider public.

Six Chance Voight entities have been in interim liquidation since December, and remain under the control of PricewaterhouseCoopers (PwC).

The FMA said today it continues to seek orders in the High Court to liquidate the companies.

The first call in the High Court for the liquidation application is scheduled for this Thursday.

The FMA said it intends to ask the court to schedule a hearing at the earliest convenient date after April 20 to determine its liquidation application.

The six entities in interim liquidation are:

• Chance Voight Investment Corporation Limited
• Chance Voight Investment Partners Limited
• CVI Partners Mortgage Fund Limited
• CVI Partners Mortgage Income Fund Limited
• CVI Securities Limited
• CVI Financial Limited

In December last year, the FMA warned investors to “fully inform” themselves before providing further funds to the companies’ director Bernard Whimp or any other Chance Voight-related person or entity.

At the time, FMA head of enforcement Margot Gatland said it understood Whimp had recently contacted Chance Voight investors about the interim liquidation and “amongst other things, sought payments which [Whimp] has described as donations to fund legal expenses”.

“Those with any queries about their investments (including any communications received from Whimp) should speak with the interim liquidators and seek independent advice from a lawyer or a financial adviser.”

Gatland said the FMA considered there was reason to believe the companies may be insolvent.

She said the affairs of the group may have been conducted in a manner that breached provisions of the Companies Act 1993, adding that Whimp may have breached the Financial Markets Conduct Act 2013 and other financial markets legislation.

Before seeking court orders, the FMA corresponded with Whimp regarding various aspects of the Chance Voight business over a number of months and had issued Chance Voight with four compulsory information request notices under Section 25 of the Financial Markets Authority Act 2011.

Among other things, the notices sought accounting and financial records.

The FMA was not satisfied with the responses received by Whimp and formed the view that the group may be insolvent and may be in breach of the legislation.

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