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6 December 2001

News Release

Securities Commission Removes Directors of New Zealand Commercial Mortgage Brokers Limited

The Securities Commission has ordered that New Zealand Commercial Mortgage Brokers cease to act as contributory mortgage brokers. The Commission has removed the directors of the broker's nominee company, Bryn Vincent Evans and Jefferson John McIntyre.

Christchurch chartered accountants David Crichton and Keiran Horne have been appointed to act as broker for the existing contributory mortgages of New Zealand Commercial Mortgage Brokers. Crichton and Horne have also been appointed directors of the nominee company. Any investor inquiries should be made to Crichton Horne.

A further order prohibits New Zealand Commercial Mortgage Brokers from offering contributory mortgages to the public for five years.

The Commission considered that investors' funds were at risk because the company has:

continually failed to keep proper accounts;
failed to lodge an annual report with the Registrar of Companies;
failed to tell investors about a significant change in the terms of a mortgage.

The directors have not met the standards of care and good governance expected of those who raise funds from the public.

Chairman Jane Diplock said New Zealanders have large sums of money invested in contributory mortgage schemes. "Investors need to be confident that contributory mortgage schemes comply with the law and are properly managed," she said.

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