(Media releases from the Securities Commission)
1 February 2011
The Securities Commission has commenced civil proceedings against Insured Group Limited, formerly known as Lombard Group Limited, in relation to alleged breaches in 2007 and 2008 of the continuous disclosure provisions of the Securities Markets Act 1988.
The breaches relate to the company's failure to disclose information to the market, such as loan book quality and liquidity, regarding the performance of its finance company subsidiary Lombard Finance and Investments Limited (LFIL).
The information the company failed to disclose was material as LFIL constituted a major part of Lombard Group's business, and Lombard Group was financially dependent on its subsidiary.
"Charges arising out of this lengthy and complex investigation have already been laid against four directors of LFIL," said Sue Brown, Director - Investigations and Litigation.
"Compliance by listed companies with their continuous disclosure obligations is vital to the integrity of the capital markets. The Commission therefore considered this case warranted the current proceedings."
Contact: Roger Marwick 04 471 7659