2 Apr 2012

Trustee performance at Hanover to be probed

7:13 pm on 2 April 2012

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".