Trustee Executors has announced that 35,000 South Canterbury Finance investors who are due to receive up to NZ$1.6 billion in government guaranteed investments and interest payments may now not receive their money back until mid-October.
The government handed over NZ$1.6 billion to Trustee Executors on August 31, but the trustee then had to get a register of data on who the investors were and how much they were owed to Computershare as paying agent. Trustee Executors said the audit and transfer of the data was a complex process that was nearly complete.
Trustee Executors Regional Manager Yogesh Mody said the registry file was likely to be with Computershare "in the coming days, but on current information it will take about two weeks from when they receive the file to when the payment can be made."
"We understand the process is taking longer than some may have thought however the processes of auditing and confirming investor details on the register are essential to ensure investors are paid the correct amount. This is a complex, detailed process," Mody said.
The government paid NZ$1.6 billion to the trustee on August 31 as a full settlement under the terms of the government guarantee on investments in South Canterbury Finance. Bond holders, who are also all being paid out, have already started receiving payments of up to NZ$350 million because the bond register was already managed by Computershare.
Debenture investors will also receive a 3% interest return from August 31 up until the day they were paid.
A spokeswoman for Trustee Executors said the money had been placed back on deposit with the government from August 31 so the trustee would not receive any returns above the 3% Official Cash Rate.
If the NZ$1.6 billion had been placed with a bank at a call rate of 3.75% then any trustee would have received a 'bonus' of NZ$1.3 million. See all bank call rates here.
14 Comments
everyone is right - everyday bludgers left right and centre, GG sure investment, plus the higher the risk the earlier the payout (if they crash) and safe as houses and all on the taxpayer
don't think this will be on the agenda as a winning formula for the future government, don't know if aussie has pegged back on there GG but might be a lesson learnt on both sides of the tassie
if people after the bailout are looking for something else now that is safe as houses they might just get their heads around why we have a saying ' safe as houses'
I see a few dollars going back into personal property ownership (as opposed to property fund) so that no FF tries to swindle them again
maybe not on the new fault line until it is settled mind you....
got to be a boost to property surely no matter how much Bernard flaps his gums.
By the way does his ad on the radio for his time slot say NZ's most trusted independent financial journalist or NZ's mistrusted independent financial journalist - lol....
secret agendas - not me - I like property and it's the only way I know to make an honest (millions) buck....
PS: In fairness, property is somewhere down the chain GG as long as we have social welfare and those that need or use it, also the top end takes care of itself... it will keep growing... just look at all the new millionaires in aussie - money to burn...
OneNews Poll about was it fair to reimburse SCF investeros and has Govt handled the situation as it should have ? = 62% yes; 26% no and 12% don't know.
Realise this poll is probably not as scientific a sample of opinion as that of bloggers on this site, but it does make one think that the government may have read public opinion correctly?
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