Since 2006, 51 New Zealand finance companies have either gone into liquidation or receivership, or frozen payments. Many New Zealanders lost their money.
The scale and circumstances of the sector gave rise to concerns of inappropriate behaviour and breaches of the Securities Act and a programme of investigations into the failures was initiated.
Below is the list of the failed finance companies.
| No. |
Company |
Event |
Date of event |
| 1 |
Belgrave |
Receivership |
1/05/2008 |
| 2 |
Bridgecorp |
Receivership |
1/07/2007 |
| 3 |
Bridgecorp Investments |
Liquidation |
1/07/2007 |
| 4 |
Capital + Merchant |
Liquidation |
1/11/2007 |
| 5 |
Dominion Finance |
Receivership |
1/09/2008 |
| 6 |
Five Star Consumer Finance |
Receivership |
1/08/2007 |
| 7 |
Five Star Finance |
Receivership |
1/09/2007 |
| 8 |
Hanover Capital |
Moratorium |
1/07/2008 |
| 9 |
Lombard Finance |
Receivership |
1/04/2008 |
| 10 |
Nathans Finance |
Receivership |
1/08/2007 |
| 11 |
National Finance |
Receivership |
1/05/2006 |
| 12 |
North South Finance |
Moratorium |
1/12/2008 |
| 13 |
South Canterbury Finance |
Receivership |
1/08/2010 |
| 14 |
United Finance |
Moratorium |
1/07/2008 |
| 15 |
OPI Pacific Finance |
Moratorium |
1/03/2008 |
| 16 |
Mutual Finance |
Receivership |
1/07/2010 |
| 17 |
Viaduct Capital |
Receivership |
1/05/2010 |
Referred to another regulator, concluded with another enforcement option or closed
| No. |
Company |
Event |
Date of event |
Status |
|
18
|
Allied Nationwide Finance
|
Receivership
|
August 2010
|
Closed, warning letter issued to directors
|
|
19
|
Antares
|
Liquidation
|
May 2008
|
Referred to another regulator *#
|
|
20
|
Equitable Mortgages
|
Receivership
|
November 2010
|
Closed ##
|
|
21
|
Irongate Property Limited
|
Receivership
|
May 2011
|
Closed ##
|
|
22
|
Provincial Finance
|
Receivership
|
May 2006
|
Referred to another regulator *
|
|
23
|
Western Bay Finance
|
Receivership
|
August 2006
|
Referred to another regulator *
|
|
24
|
Finance & Investments
|
Receivership
|
September 2007
|
Concluded (enforceable undertakings) ##
|
|
25
|
Beneficial Finance
|
Moratorium
|
October 2007
|
Closed ##
|
|
26
|
Capital & Merchant Investments
|
Receivership
|
November 2007
|
Closed ##
|
|
27
|
Chancery Finance
|
Liquidation
|
November 2008
|
Closed ##
|
|
28
|
Compass Capital
|
Receivership
|
June 2009
|
Closed ##
|
|
29
|
Cymbis/Fairview
|
Receivership
|
May 2008
|
Closed ##
|
|
30
|
Dorchester Finance
|
Moratorium
|
June 2008
|
Closed ##
|
|
31
|
LDC Finance
|
Receivership
|
September 2007
|
Closed ##
|
|
32
|
Numeria Finance
|
Receivership
|
December 2007
|
Closed ##
|
|
33
|
Orange Finance
|
Moratorium
|
August 2008
|
Closed ##
|
|
34
|
Aorangi Securities (including Hubbard Management Funds)
|
Complaint
|
June 2010
|
Referred to another regulator**
|
|
35
|
Rockforte Finance
|
Receivership
|
May 2010
|
Referred to another regulator**##
|
|
36
|
Waipawa Finance
|
Liquidation
|
August 2008
|
Referred to another regulator**
|
|
37
|
QED
|
Liquidation
|
March 2008
|
Referred to another regulator*
|
|
38
|
Fendal Finance
|
Complaint
|
March 2009
|
Referred to another regulator*
|
|
39
|
Clegg & Co
|
Receivership
|
October 2007
|
Referred to another regulator*
|
|
40
|
All Purpose Finance (trading as St Kilda)
|
Receivership
|
November 2008
|
Closed##
|
|
41
|
Direct Property St Laurence Investments (No.6) (part of St Laurence Group)
|
Moratorium
|
June 2008
|
Closed##
|
|
42
|
Finance & Leasing
|
Receivership
|
January 2011
|
Closed##
|
|
43
|
Geneva Finance
|
Moratorium
|
October 2007
|
Closed##
|
|
45
|
Mascot Finance
|
Receivership
|
March 2009
|
Closed##
|
|
46
|
Strata Finance
|
Receivership
|
April 2009
|
Closed##
|
|
47
|
Kiwi Finance
|
Receivership
|
April 2008
|
Completed December 2011, with repayment of investors.
|
|
48
|
Boston Finance
|
Moratorium
|
March 2008
|
Closed October 2012 ##
|
|
49
|
Structured Finance (NZ)
|
Moratorium
|
May 2009
|
Closed October 2012 ##
|
|
50
|
Vision Securities
|
Receivership
|
April 2010
|
Closed October 2012 ##
|
|
51
|
Propertyfinance Securities
|
Receivership
|
August 2007
|
Closed October 2012 ##
|
|
52
|
Strategic Finance (including Strategic Nominees)
|
Moratorium
|
August 2008
|
The investigation concluded in February 2013.
|
|
53
|
St Laurence
|
Moratorium
|
June 2008
|
Investigation complete. Warning letter issued to Directors.
|
|
54
|
South Canterbury Finance Limited
|
Receivership
|
June 2010
|
Criminal investigation closed in 2011.
|
| * |
National Enforcement Unit of the Ministry of Economic Development |
| ** |
Serious Fraud Office |
| # |
Relates to Five Star prosecution |
| ## |
On the basis of information we currently have, we will continue to include these issuers within its general surveillance. Our decision can and will be reviewed, and our investigation may be reopened, if new information comes to light. |
