Directors caught up in Hubbard web

Photo / Sarah Ivey

The statutory managers of 12 entities associated with Allan Hubbard say their appointment to a company owned and managed by Timaru accountants HC Partners is not a reflection on the firm's trustee management.

Hubbard Churcher Trust Management and Forresters Nominees Company were added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn on Monday.

Hubbard Churcher Trust Management is owned and managed by the partners of HC Partners and used to be known as Hubbard Churcher.

Allan Hubbard resigned as a director of the accountancy firm on June 29 - nine days after the statutory managers were appointed to manage his and wife Jean's assets as well as Aorangi Securities and seven trusts.

McGlinn said the directors of HC Partners had been "caught up" in the complex ownership arrangement that was part of Hubbard Management Funds.

Both Hubbard Churcher Trust Management and Forresters Nominee Company hold assets associated with Hubbard Management Funds, which invested on behalf of around 300 investors.

"I would like to make it clear that the statutory management is in no way a reflection on the directors' management of their clients' trusts.

"It merely provides us with the control we need in protecting and managing the investments in Allan Hubbard's Hubbard Management Funds business," McGlinn said.

HC Partners director Nigel Gormack said Hubbard Churcher Trust Management only acted as an independent trustee of the assets held on behalf of clients.

"Hubbard Churcher Trust Management is otherwise not linked in any way to Allan Hubbard's Hubbard Management Funds business."

However, Hubbard Churcher Trust Management would now be retired as an independent trustee and replaced by a new trustee on the wishes of clients to ensure there was minimal disruption.

A spokesman for the statutory managers said they would release their third report on the Hubbard entities next week.