Mortgage brokers charged over late annual reports

Investment watchdog the Financial Markets Authority has charged two contributory mortgage brokers with failing to deliver annual reports.

First Mortgage Investments Limited and Prudential Mortgage Limited were both due to deliver annual reports by June 30, 2013 for financial years ending March 31, 2013.

Contributory mortgage schemes pool money from many investors and lend it to property owners or developers.

Under the Securities Act they must file annual reports within three months of the end of their financial year.

FMA Head of Enforcement, Belinda Moffat, said when companies failed to file annual reports it limited the ability of investors to make informed investment decisions.

"Non-filing of annual reports and financial statements is an issue which FMA takes seriously and we are considering a number of other cases where these key documents have not been filed," she said.

"Ensuring accurate and timely disclosure to investors and promoting compliance with reporting obligations is a key priority for FMA."

First Mortgage appeared in the Auckland District Court on January 30 2014 and will reappear on March 20 2014 while Prudential is due to appear in the Christchurch District Court on 5 March 2014.

The charges have been laid under the Securities Act (Contributory Mortgage) Regulations and carry a maximum fine of $5000.