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Credit SaILS investigation

Page last updated: 18 Dec 2012

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.

18 December 2012

FMA Settlement agreement

FMA welcomed Commerce Commission settlement agreement. FMA entered into its own settlement with the Companies and agrees that this agreement fully and finally settles all past present and future claims by FMA, including claims on behalf of investors, in relation to or connected with the offer or allotment of Credit SalLS. See media release.

December 2012

Commerce Commission Settlement agreement

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.


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