Nice to see Tony Gavigan and others pursuing this.
I was lucky to avoid this one,but think all involved should have known better,and have a lot to answer for.
And some of them did not even know that they were being 'stuffed' with the duds!
"One retired man, who didn't want to be named, said investments were supposed to go into a conservative discretionary portfolio. In other words, Forsyth Barr chose the investments, providing they were low risk. But the firm placed $20,000 of his money in the high-risk Credit SaILS.
The investor found out about the loss via a letter from Forsyth Barr, telling him the value of the investment had plummeted to zero. Credit SaILS was among four investments removed from the portfolio within a year because they fell over.
Included were the high profile Feltex, Strategic Finance and Babcock & Brown failures.
"If you get three or four in a row, you really have to start questioning."
Operative word here - discretionary. Forsyth Barr made/makes the decisions which investment to go into the clients' portfolios.
To be fair, Credit Sails was 2008, Strategic Finance was 2010, Babcock & Brown was 2009, and Fletcher was not a buy in November 2017, and Fliway was taken over at a higher price. I am sure they were not the only broker that did this sort of thing which is why the FMA were formed.
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Originally Posted by Balance
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