More Hubbard entities put into statutory management

Photo / Sarah Ivey

Two more entities established by Allan Hubbard have been placed into statutory management.

The Government yesterday put Hubbard Churcher Trust Management and Forresters Nominee Company into management after receiving a recommendation from the Securities Commission.

Commerce Minister Simon Power said the decision to add the two companies was a result of the ongoing investigations by the statutory managers who reported their findings to the Securities Commission.

"The Securities Commission recommended this action to preserve the interests of the beneficiaries of trusts administered by the companies, preserve the interests of investors in Hubbard Management Funds in the public interest, and allow the affairs of the companies to be dealt with in a more orderly or expeditious way.

"The Securities Commission was satisfied that those interests could not be adequately protected any other way."

Hubbard Churcher Trust Management is owned and operated by the partners of HC Partners in Timaru, an accountancy firm formerly known as Hubbard Churcher.

HCTM holds the majority of the investment assets of Hubbard Management Funds, which invests funds on behalf of 300 investors.

HCTM is also a corporate trustee for some clients of HC Partners.

Forresters Nominee Company has Allan Hubbard as its sole current director and shareholder.

Power said the commission had consulted Hubbard's legal team and the other directors of HCTM before making its recommendations.

"I am advised the directors of HCTM do not object to the placing of HCTM and Forresters Nominee Company into statutory management."

The directors of HC Partners were expected to be in touch with their trust clients soon.

Hubbard's company Aorangi Securities, seven charitable trusts, Mr Hubbard and his wife, Jean, were put into statutory management in June.

The Temple Bar Family Trust and Barns Charitable Trust were last week put into statutory management on recommendation from the Securities Commission.

Trevor Thornton, Richard Simpson, and Graeme McGlinn are the statutory managers in charge of the entities.

Hubbard was the founder, and chairman for life, of South Canterbury Finance (SCF) which went into receivership last month with taxpayers paying out $1.6 billion to investors under the retail deposit guarantee scheme.

Labour has been putting pressure on the Government to be fully transparent about its handling of SCF, and has called for a commission of inquiry.

Hubbard supporters have also called for a public inquiry, but yesterday Prime Minister John Key said he didn't see a need for that.

- NZPA, staff reporter