The Financial Markets Authority is looking at some of Pyne Gould Corp's related party transactions, which along with complaints about the wealth manager's governance, prompted auditor KPMG to quit its role the company.
The market watchdog has "made inquiries over related party transactions involving PGC over the past two weeks," Pyne Gould said in a statement. The wealth manager is cooperating with the FMA, but is unable to make any further comment, it said.
"I can confirm that FMA has been making inquiries over the past two weeks into issues regarding PGC and related entities, has been actively engaging with the company in relation to these issues, and is aware of the issues between KPMG and PGC," FMA chief executive Sean Hughes said in an emailed statement. "At this stage it is not appropriate for FMA to comment further, particularly as our inquiries are on-going."
That comes a day after KPMG resigned over "unresolved differences as to whether certain transactions should be disclosed as related party transactions, and concerns over the adequacy of governance and management of financial reporting."
Pyne Gould rejected the auditor's claims, saying it would have afforded KPMG the opportunity to air its concerns in the 2012 annual report. The Christchurch-based company tapped Deloitte on April 2 to oversee its central accounting functions.