Seven property investment firms officially warned for overstepping boundaries

The FMA’s has issued formal warnings to seven wholesale funds using non-compliant eligible investor certificates: Black Robin Equity and Westwood Terraces BRE; Du Val Capital Partners and Du Val BTR GP; E+O Property Syndication; Jasper NZ Investments; Provincia Property Fund; Williams Corporation Capital Partnership GP; and Wolfbrook Capital.

A review of wholesale investments into property-related offers was launched by the FMA after an increase in complaints and concerns about how such wholesale offers were being promoted, and whether the appropriate investors were being targeted and accepted.

The most significant findings related to the use, confirmation, and acceptance, of eligible investor certificates.

The FMA found some investor certificates were not confirmed by financial advisers, accountants or lawyers, as required, while other certificates were confirmed - and accepted by wholesale property investment firms - with no grounds or the grounds did not relate to the matters certified.