Huljich Wealth Management (NZ) Ltd has been at the center of a significant scandal in New Zealand. The company was found to have misled investors about its investment products.
The Financial Markets Authority (FMA) investigated Huljich Wealth Management (NZ) Ltd and found that the company had made false or misleading statements to investors. This was a serious breach of trust and confidence.
The FMA's investigation revealed that Huljich Wealth Management (NZ) Ltd had used complex and misleading language to describe its investment products, making it difficult for investors to understand the risks involved.
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Huljich Wealth Management (NZ) Ltd Issues
Peter Huljich and Huljich Wealth Management face criminal charges for allegedly misrepresenting the performance of their KiwiSaver scheme.
The Securities Commission alleges Huljich and the firm failed to disclose related-party payments in offer documents between 2008 and 2010.
Former Auckland mayor John Banks is chairman of the firm, and former National Party leader Don Brash was chairman before Banks and later took over as managing director.
The Commission alleges Peter Huljich made untrue statements in the scheme's registered prospectuses, claiming they met New Zealand financial standards.
The false and misleading statements were made in multiple prospectuses and investment statements between 2008 and 2010.
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Compensation Payments
In 2010, Peter Huljich admitted responsibility for "lapses" in investment practice, failing to disclose compensation payments to the company's KiwiSaver funds.
He made two payments of $150,000 to compensate for poorer than expected returns.
Rival fund managers Gareth Morgan and Carmel Fisher described Huljich's conduct as "beyond the pale".
Don Brash took over Peter Huljich's executive roles as managing director and chief investment officer.
Brash admitted that the business had not been transparent, but pointed out that some allegations about the company's management were unfair and untrue.
He left the firm and sold his shares in October 2010, and John Banks then took over the management role.
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Peter Huljich Indicted
Peter Huljich and Huljich Wealth Management face criminal charges for allegedly misrepresenting the performance of the finance company's KiwiSaver scheme.
The Securities Commission alleges Huljich and the firm failed to disclose related-party payments in offer documents for the Huljich KiwiSaver Scheme between 2008 and 2010.
Suggestion: KiwiSaver
Those payments had a significant impact on the Huljich KiwiSaver Funds' investment performance figures, according to the commission.
Peter Huljich made untrue statements in the scheme's registered prospectus, which wrongly claimed the documents met New Zealand financial standards.
The false and misleading statements were made in the scheme's registered prospectus of August 2008, amended in February 2009, a prospectus in September 2009, and in investment statements from May 2008 through until January 2010.
The first call of the charges will be in the District Court in Auckland on January 14.
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Frequently Asked Questions
How much is the Huljich family worth?
The Huljich family's net worth is at least NZD$444 million, accumulated from various business ventures including property, finance, and more. Their wealth is a result of successful investments and entrepreneurial endeavors.
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