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News Release
3% HOME LOANS GROUP - ADVERTISEMENT PROHIBITED
An advertisement for a scheme called the 3% Home Loans Group has been prohibited by the Securities Commission acting under the authority of section 38B of the Securities Act 1978.
The advertisement is in the form of a brochure. It invites people to make regular contributions to a roster system for loans at 3% interest. The brochure includes an introduction to the 3% Home Loans Group, and two pages of questions and answers about the scheme.
As well as prohibiting this brochure, the Commission has banned the distribution of any other advertisement relating to the scheme.
The Commission believes that this scheme is offering securities to the public without complying with the Securities Act 1978. This requires the scheme to have a registered prospectus, and to make its offer to the public in an investment statement, or an advertisement which refers to the investment statement.
On the information available to the Commission Mr John Richard Pericles is the person behind the scheme. Mr Pericles is based in Auckland.
People should exercise caution and seek expert advice before paying or committing money to the 3% Home Loans Group.
Norman F. Miller
Senior Executive (Operations)
19 February 1998
Contact:
Catherine Chapman, Communications Officer, 04 472 9833 ext 840