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10 September 2012

Perpetual Trust Limited

The FMA's inquiries focused on loans made by the Perpetual Cash Management Fund to Torchlight Fund No. 1 LP and the implications for the investors in the Fund and the Perpetual Mortgage Fund.

10 September 2012 - High Court's judgment ruled that FMA can retain documents relating to its inquiries into Perpetual Trust Limited.

 

5 July 2012 - FMA confirmed its continued engagement with Perpetual Trust Limited to recover $25 million in related party loans made by Perpetual Cash Management Fund.

 

4 July 2012 - COA dismissed Perpetual's appeal and ruled in favour of High Court decision. Perpetual also accepted that investors should be provided with information on the history of the Torchlight loan transaction.

 

26 June 2012 - The confidentiality order made by Ellis Jon 24 May 2012 was discharged. Perpetual appealed against this decision.

Download Perpetual High Court(Oral) judgment PDF

 

20 June 2012 - Application filed by FMA to lift the confidentiality order. It contends that the pleadings and evidence should be available for public inspection to promote the purposes of the Financial Markets Authority Act 2011.

 

24 May 2012 -  Confidential order: Perpetual sought judicial review of a number of decisions made by and actions of the Authority, since it became aware of the problems identified by Trustees Executors.

At Perpetual's request, Ellis J made a confidential order for information relating to the interim relief application.

 

April 2012 - FMA issued notices under s25 of the Financial Markets Authority Act requiring that Perpetual and various individuals provide documentation to FMA. The information was provided to FMA over a 16 day period.

FMA began making inquiries into issues regarding Perpetual Trust Limited (Perpetual), (a subsidiary of Pyne Gould Corporation (PGC)) and related entities. 

 

Background

The FMA's inquiries focused particularly on loans made by the Perpetual Cash Management Fund (Fund) to Torchlight Fund No. 1 LP (Torchlight) and the implications for the investors in the Fund and the Perpetual Mortgage Fund.

In FMA's view the loans were not in the best interests of investors in the Funds and the circumstances in which they were made by Perpetual reflects a lack of understanding of its role as trustee of funds of this nature. Following on-going engagement between Perpetual and FMA, the loans were repaid.