The Securities Commission says investors in failed finance firms may be entitled to their money back, plus interest, if the companies failed to register a prospectus as required by law.
Dozens of finance companies have collapsed since 2007 and the Securities Commission says it is investigating all of them.
The Securities Act requires companies to register a prospectus before securities are sold to the public.
The commission says its recent investigations into two failed finance companies, QED Ltd and Five Star Debenture Nominees, found that neither had done so.
As a result, the commission says, investors in the companies could be entitled to a refund of the $45 million invested in both companies.
The rule may apply to other companies that are under investigation, the commission says.
Spokesperson Roger Marwick says investors who did not receive an investment statement before investing may also be able to seek a refund.
Mr Marwick says the commission is keen to hear of any instances where investors were sold securities without a prospectus or investment statement.
Commission 'has failed investors'
The publisher of depositrates.co.nz, Philip Macalister, says the Securities Commission has failed investors.
Mr Macalister told Checkpoint on Friday the discovery comes far too late and shows the authority has not been doing its job in policing the market.
Mr Macalister says that what is so galling is that while some finance companies have been out soliciting money illegally, the commission is refusing to help investors get their money back.
