By MARK FRYER
The Securities Commission wants fund managers to supply sworn statements saying whether they have complied with the regulations that allow overseas managed investments to be offered in New Zealand.
Letters were sent to about 60 managers last month, giving them until July 18 to produce the statements.
The request
follows problems with funds offered by BT Funds Management and Edinburgh Fund Managers.
At the centre of the issue are the legal exemptions allowing funds from Australia and Britain to be offered in this country, without having to produce a separate New Zealand prospectus.
To take advantage of that exemption, fund managers have to meet certain legal requirements, including filing documents with the Registrar of Companies.
In April, BT and its owner, Westpac, told the commission some funds offered by BT appeared not to have complied.
If the required documents had not been filed, said the commission, the exemption did not apply and any investments in those funds would not be valid.
Investors in those funds were therefore entitled to their money back, plus 10 per cent a year.
BT has since applied to the High Court, asking to have the affected investments validated.
Securities Commission general counsel Liam Mason said yesterday that the commission had written to all the managers it knew of who had used the exemptionnotices.
"We've asked them to review their compliance with the exemption notices and to provide us with a statement as to whether or not they find any non-compliance."
Managers had also been asked to detail the steps they had taken to find out whether they had complied with the regulations.
"We're looking for a sworn statement from someone who's authorised by the board - we want this to be taken to the attention of the boards."
Mason said the commission had not decided what it would do with the information from the fund managers.
