17 August 2012
FMA welcomes ruling on asset preservation orders
The Court of Appeal has dismissed an appeal by the trustees of the KA3 and KA4 trusts on interim asset preservation
orders obtained by FMA.
The trustees were appealing the High Court's earlier decision to uphold interim asset preservation orders in respect of
assets of the trusts of former Hanover director Mark Hotchin. FMA was opposing the appeal.
FMA CEO Sean Hughes said, "These orders are important for enabling FMA to preserve assets for aggrieved investors
pending the outcome of the civil proceedings filed by FMA in March.”
Background
In December 2010 the High Court granted interim asset preservation orders in respect of assets believed to be associated
with former Hanover director Mark Hotchin. Those orders bound Mr Hotchin and the trustees of the KA3 and KA4 Trusts. The
orders were sought by FMA's predecessor, the Securities Commission.
Mr Hotchin appealed the upholding of the orders in December 2011 by the High Court. That appeal was opposed by FMA. The
appeal was dismissed by the Court of Appeal in April this year.
The trustees of the KA3 and KA4 Trusts also appealed the upholding of the High Court's orders of December 2011. FMA
opposed that appeal.
FMA filed civil proceedings against the directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd and United
Finance Ltd on 30 March 2012. No hearing date has been allocated for this proceeding yet.
ENDS