News that the trustee for Hanover Finance will be examined by investors taking legal action over the company's collapse, has been welcomed by New Zealand Trustees Association.
Lawyer Tim Rainey - representing 3000 former Hanover investors - says the Financial Markets Authority's legal action against Hanover Finance could aid their efforts, which include examining the role of the trustee, Guardian Trust.
Corporate trustees historically have a watchdog role protecting investors, and NZ Trustees Association registrar Errol Anderson says the legal move has wide ramifications.
"Guardian Trust has a very pivotal role in what has gone on here, and cannot escape being placed under scrutiny," Mr Rainey says. "It's very important for all trustees that the FMA has a good hard look at the corporate trustee in this situation".