Financiers 'sound’

Press, 3 September 1986, Page 32

Financiers 'sound’

PA Wellington It is possible there may be some loss of investor confidence in small finance companies as a result of some of AIC Corporation’s subsidiaries being placed in receivership, the chairman of the NZ Finance Houses Association, Mr Bob Hill, said yesterday. “The investment public are very fickle,’’ Mr Hill said. But he said he felt it was

unlikely there would be any major consequences for other finance companies as a result of what had happened to the AIC subsidiaries, adding that AIC was a relatively small company. “As far as the association is concerned, all the (member) companies are in a sound condition.” AIC is not a member of the association.

Mr Hill said it was fair to say that some of the smaller finance companies were being put under increased pressure by changes in the economic environment. "I think everybody acknowledges that.” But all members of the association kept in close contact with the association and if anything “untoward” was occurring within a company, it would be reported to the association — which would then take, steps to help the company. “So I don’t have any fears from that point of view.” People with money in the affected AIC companies would find their money frozen for the time being, the receiver, Mr John Tuck, of Peat Marwick Mitchell, said from Auckland. Meanwhile, the managing director of AIC Charge Card Services, Mr David Renwick, said he had been called by some of the company’s merchants wanting clarification of the company’s position.

Mr Renwick said AIC Charge Card Services had previously been 51 per cent owned by AIC Corporation, but this stake had been sold to the ANZ Banking Group in June. AIC Charge Card Services was now awaiting a name change and no longer had any connection with the AIC parent company.