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Hubbard (2)

  • June 22nd, 2010

I hope the Securities Commission knew what they were doing when they asked the Minister to inflict statutory management on Alan Hubbard and his wife.

Watching TV One coverage yesterday evening was very sad – especially the Timaru Herald headline :Hubbard in Fraud Probe".

If the Hubbards are indeed solvent and the problem is just a paperwork muddle, those who have brought down headlines like that on Mr Hubbard should feel ashamed of themselves. There is law that can sort out that kind of thing without calling in the SFO.

If  the government has seen fire in the smoke we shall know in due course, but it was not reassuring to have the Minister solemnly citing an investor's complaint that he had not had an investment statement as the trigger for all this. Diddums.

We've got a major securities law refview underway partly prompted by dawning recogntion of the uselessness of investment statements and much else of the paraphenalia of offering law. I wonder how long that investor had been investing with Hubbard without investment statements?

Nor did it seem necessarily germane to me that there are related party loans from Aorangi to the Hubbards and their businesses.

I thought that related party investment was exactly what most of those investors wanted. They wanted their money alongside Alan Hubbard's, in his businesses, because he was so successful.

Normally I would be with Bryan Gaynor in deploring related party lending. Usually it is a breach of the expectations of investors. In this case it was the whole point, from what I've heard from South Island friends.


  • Murray
  • June 23rd, 2010
  • 4:24 pm

I agree with your comment that for such as rushed and drastic move I'd have expected more substance that the Minister gave on Sunday. Securities law has made prospectuses so difficult to read, who reads them anyway?

  • Tim hawkins
  • June 24th, 2010
  • 7:38 pm

Alan is a Mans man like my farther and grandfarther , the bullshit brigade are fedding on a real man.
I have never met him or his wife, or have any business or have had business with them . But i no when i see the old honest princables that have left New Zealand Business.
We should look at people like Fay Rigright who have been able to Pay of goverment departments to get away with fruad to realise how honest New Zealand goverment whatch dogs operate in this country.
Alan , you and your wife are people we can be proud of , a rear breed
Thanks Tim 

  • Beware of the Dog
  • July 18th, 2010
  • 12:38 am

The single complaint by one investor does not seem to warrant a government investigation and certainly not the implementation of the statutory management order. It would warrant a response from Aorangi Securities in the first place. The Securities Act of 1978 requires that an investor prospectus should be supplied to investors prior to investment when a call for investment is made to the public. However such prospectus is not required if a call for investments is sought from family members or close business associates. It would appear that most Aorangi Investors know Mr Hubbard well and fall within the category which is not "public". It is curious that faced with all the public attention that the statutory management order has drawn, the publication on the internet of the First Statutory Management report which for a certain number of ethical reasons (specifically its preliminary nature void of any final conclusions) should have remained confidential at this stage, the one and only element that has remained confidential is the identity of the investor who complained.  If the call for investments was not a "public call for investment" and therefore a “private call” and therefore exempt from the Securities Act regulations who is the investor who made the complaint? How well did such investor know Mr and Mrs Hubbard before learning of Aorangi Securities which is an investment company I had never heard of until June 20th.

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