FMA and the Commerce Commission have inquired into alleged contraventions of New Zealand law by some of the Companies in relation to the marketing, promotion and sale of an investment product called Credit Saleable Index Linked Securities (Credit SalLS). The companies involved were Forsyth Barr Limited, Forsyth Barr Group Llrnlted, Credit Agricole Corporate and Investment Bank, Credit Sail Limited, and Calyon Hong Kong Limited.
December 2012
Download Commerce Commission Settlement agreement PDF
Subject to the terms of this agreement, the CACIB parties and Forsyth Barr parties agree to establish a settlement fund of $60 million to be distributed to investors who lost money when Credit SaILS failed in 2008.
Background
Credit SalLS(Credit Saleable Index Linked Securities) were marketed as secured fixed interest New Zealand Dollar denominated debt securities on the following basis:
- Credit SalLS were issued on 15 June 2006 and are scheduled to mature on 22 December 2012;
- the issue price was $1 per note;
- the minimum investment was $5,000;
- the offer was available to members of the public; and
- 91.5 million Credit SalLS were issued.
Credit SaILS failed in 2008