Category: Banking & Finance

  • Tiny Homes – time to review

    23 March 2023

    Tiny or modular homes have become popular in New Zealand in recent times. This is not surprising. Housing affordability and constraints on the building sector have proved challenging to many would-be home buyers. The tiny home option offers an affordable alternative with a simple building and consents package. It also appeals to those looking at retirement or a lifestyle change.Unfortunately, the problem with tiny home providers is their tendency to go broke, leaving buyers out of pocket with no home.The ...

  • FMA Advertising Guidelines – A watershed moment for wholesale investment

    22 November 2021

    Last month, the Financial Markets Authority (FMA) published its guidelines on advertising for financial products.  Recent advice to clients, in addition to many years advising on a wide array of financial products, has caused us to reflect on the implications of these guidelines for wholesale investment.Back in the day (let’s say the year 2000), it was generally accepted that, disclaimers aside, the only rules guiding wholesale advertising were the usual Fair Trading Act concepts of misleading and deceptive conduct.  At ...

  • Procedural Requirements for Guarantees

    9 March 2021

    Clearly record the terms of a guarantee in writing. And all intended guarantors sign the guarantee.The Supreme Court in Brougham v Regan has recently emphasised the strict requirements for a guarantee to be valid and enforceable. It overturned the Court of Appeal, which had taken a more relaxed approach in reaching its decision.A company entered into a Term Loan Agreement (“the Agreement”) with each of the two directors being named as guarantors of the loan. There were two key features ...

  • Filling the Funding Gap

    5 October 2017

    We are seeing the effects of major trading banks pulling back from financing the property development sector. This change is occurring for various reasons. International banking covenants need to be observed. The level of exposure to this sector, which may have peaked, is also a factor.As a result, there is greater demand for other first mortgage and mezzanine finance. Demand is now exceeding the local supply. Non-bank lenders can pick and choose their deals, leaving a number of good opportunities ...