Strategic Finance probe over - action likely

Kerry Finnigan, former head of Stragetic Finance, is one of six directors who may face civil proceedings filed by the FMA. Photo / Supplied

Six directors of failed finance company Strategic Finance are likely to have breached the Securities Act, says the Financial Markets Authority (FMA).

The FMA said today it had concluded its investigation into Strategic Finance, which went into receivership in March 2010 owing about 11,000 investors $383 million.

"The apparent breaches relate to statements made in a registered prospectus, investment statement and in an advertisement between March 2008 and August 2008," the FMA said.

Six directors - Kerry Finnigan, Graham Edward Jackson, Marcel Aubrey Lindale, Timothy John Rich, Denis Grenville Thom and David John Wolfenden - have been notified and each will be able to respond to the claim before civil proceedings are filed.

Former New Zealand Rugby Union boss Sir Jock Hobbs, who died last year, was also a director of Strategic.

"FMA's role as a publicly-funded litigant, acting in the public interest, necessitates this announcement to keep the market and investors informed," said FMA head of enforcement, Belinda Moffat.