KEY POINTS:
Queensland finance company g2 Finance, largely owned by the same investors who own Geneva Finance, is rectifying its prospectus that has misled potential investors about Geneva's credit rating.
In g2's prospectus on its website, it touts Geneva as having a B-plus rating. In fact, Standard & Poor's downgraded Geneva's rating last week to D when it defaulted on loan repayments.
A spokeswoman said g2 had drafted a supplementary prospectus updating the prospectus to inform potential investors of the severe downgrade and was hoping to lodge it with regulators yesterday.
She said anyone who invested in g2 after October 15 would be able to apply for their money back.
