Securities Commission bans ads from First Foundation

By NZPA

Friday 14th March 2003

The Securities Commission has banned advertisements for debt securities from First Foundation Developments Ltd, believing they are illegal.

The commission said today that the company, which describes itself as a property development company based in Queensland, has advertised in the New Zealand Herald with the latest on Saturday, March 8.

Investors were invited to invest a minimum of $10,000, with a promised annual rate of return of up to 15.92 percent.

However, the company does not have a registered prospectus and investment statement, which are required for securities to be offered to the New Zealand public.

First Foundation Development told the commission it has stopped New Zealand advertising for the offer.

Any subscribers are legally entitled to their money back, and should contact the company, the commission said.

A registered prospectus and investment statement give investors important information about the people involved in the investment, and how their money is being invested.

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