SPI's Alcock, Knight to repay $1.08 mln, banned from directorships for 5 years

Tuesday 11th November 2014

Murray Alcock and Allister Knight, directors of the various SPI group of companies, have been ordered by the Financial Markets Authority to repay investors $1.08 million and banned from heading up any company which seeks money from the public.

The directors agreed to the market watchdog's enforceable undertakings, after it found the Alcock and Knight had likely breached financial markets legislation, with sentences due next Jan. 29, the FMA said in a statement.

In a separate matter, Alcock and Knight pleaded guilty to three charges brought against them by the FMA over failing to file financial statements as directors of SPI Property. The charges and undertakings are part of a crackdown by the regulator, as it shifts to a more proactive role, with a focus on governance, intended to promote wider public confidence in the financial markets.

The SPI entities, which include 13 related businesses including a number of property syndicates offering securities in New Zealand commercial, industrial and retail properties, which Alcock and Knight are or were directors of, the FMA said. In September 2007, SPI Property Fund issued a prospectus inviting public investment in the fund, while SPI Capital managed a number of the property syndicates.

Under the agreed enforceable undertakings, Alock and Knight will repay SPI entities investors $60,000 on a pro-rata basis by the end of this month, and will also return proceeds from the sales of 656 Great South Road, held by its 656 Syndicate, and the Waitakere Court House, to investors. The total $1.08 million must be repaid by the end of June next year, FMA said.

Alcock and Knight are banned from being directors, promoters, chief executives or chief financial officers from any company seeking or holding public investment funds for the next five years. They cannot participate in the business of any SPI entities and must endeavour to ensure the companies do not seek any further investment from the public.

The directors have also agreed to issue audited financial statements for SPI Capital for the years between March 31 2011 and 2013 to the Registrar of Companies no later than the end of March next year.

BusinessDesk.co.nz

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