Advert 'that wasn't' lands Bridgecorp in hot water

An advertisement that Bridgecorp Investments says it didn't consider to be an advertisement has got the financiers into trouble with the Securities Commission.

The ad, published in a magazine in May and June this year, related to an offer of capital notes.

The Securities Commission said that it did not comply with the law because it did not refer to an investment statement. The commission also felt it contained potentially misleading information.

But Bridgecorp's marketing agency and its own staff defended themselves by telling the commission that the advertisement was not intended to be an advertisement - instead it was to inform the public about a variation of the terms in an offer document. Bridgecorp said the ad did not solicit funds and that none were received as a result of it.

The commission said yesterday that Bridgecorp had agreed to a series of undertakings that were enforceable in court relating to the incident.

They included undertaking that the advertisement would never be used again and that no other ad relating to an offer of securities would be distributed without professional advice.

Bridgecorp is also required to prepare a compliance plan for its advertising, to train its staff in the law's requirements and to report annually on compliance with the plan.