The Financial Markets Authority (FMA) has issued property development firm Du Val Capital Partners with a formal warning for misleading investors over the suspension of cash distributions. Du Val halted cash payments from its Mortgage Fund in January this year, telling investors it was looking to restructure the fund ahead of a potential listing on the NZX or another stock market. In essence, the regulator said Du Val didn’t have enough cash to pay investors and all its other costs — and so had suspended distributions. The regulator said Du Val’s statements may have been misleading or deceptive, because investors were not informed of the underlying reason the board had suspended and capitalised distributions. “The warning means Du Val investors have more accurate information on the public record about the proposal which, if they wish, means they can better engage with Du Val and/or seek advice about their options.”He said the company should reflect on its dealing obligations and whether it has provided accurate information to its investors.

Source: Stuff March 10, 2023 00:29 UTC