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FMA welcomes ruling on asset preservation orders

Media Release
17 August 2012

The Court of Appeal has dismissed an appeal by the trustees of the KA3 and KA4 trusts on interim asset preservation orders obtained by FMA.

The trustees were appealing the High Court's earlier decision to uphold interim asset preservation orders in respect of assets of the trusts of former Hanover director Mark Hotchin. FMA was opposing the appeal.

FMA CEO Sean Hughes said, "These orders are important for enabling FMA to preserve assets for aggrieved investors pending the outcome of the civil proceedings filed by FMA in March."

Background:

In December 2010 the High Court granted interim asset preservation orders in respect of assets believed to be associated with former Hanover director Mark Hotchin. Those orders bound Mr Hotchin and the trustees of the KA3 and KA4 Trusts. The orders were sought by FMA's predecessor, the Securities Commission.

Mr Hotchin appealed the upholding of the orders in December 2011 by the High Court. That appeal was opposed by FMA. The appeal was dismissed by the Court of Appeal in April this year.

The trustees of the KA3 and KA4 Trusts also appealed the upholding of the High Court's orders of December 2011. FMA opposed that appeal.

FMA filed civil proceedings against the directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd and United Finance Ltd on 30 March 2012. No hearing date has been allocated for this proceeding yet.

Ends


Contact:

Tony Reid on 021 739 052 or tony.reid@fma.govt.nz