Contributory mortgage offering troubles
Contributory mortgage man Peter van Nieuwkoop is again in trouble with the Securities Commission.
Wednesday, March 1st 2006, 6:38AM
The commission has accepted an enforceable undertaking from contributory mortgage broker Contributory Mortgage Investments Limited (CMI), its director John Martin and its consultant Peter van Nieuwkoop over three offerings; the Greys Avenue Development Limited first and second mortgages and the Trans Tasman Hotel Corporation Limited mortgage.
The commission says in a statement that it is satisfied that CMI contravened a number of provisions of the contributory mortgage regulations in its offering and management of these mortgages.
“The commission considers that CMI failed to meet the standards of care and good governance that it expects from people who raise funds from the public”, commission chairman Jane Diplock saiys
“Investors may have been misled about the financial state of the borrower, the value of guarantees given and the use of investors’ funds to repay contributions made by trusts associated with Martin and van Nieuwkoop”.
CMI, Martin and van Nieuwkoop have undertaken to:
- obtain independent legal advice about their securities law obligations
- upgrade their accounting systems
- appoint an independent director
- engage their auditors to perform an enhanced audit role and report to the Commission
- ensure that contributors are given all information that may be material to their decision to invest; and
- refrain from offering new contributory mortgages to the public before 31 March 2006.
Van Nieuwkoop has previously had trouble with the authorities over contributory mortgages when he was engaged with now defunct financial planning firm Reeves Moses. He and CMI also were fined in 2004 for breaches of the Securities Act.
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