Hotchin, FMA, back in court over asset freeze decision

Former CEO of Hanover Finance Mark Hotchin. Photo / Paul Estcourt

Mark Hotchin's lawyers and the Financial Markets Authority were back in court this morning to discuss any issues raised from Justice Helen Winkelmann's decision to keep part of his assets frozen.

Last month Justice Winkelmann released her awaited decision on whether the former Hanover Finance director would regain access to his New Zealand-based assets.

She said in her judgment that the FMA - formerly the Securities Commission - had "good grounds" to investigate Hotchin.

But the FMA has yet to issue proceedings against Hotchin or indicate what those charges would be.

His assets were frozen by the FMA in December in an unprecedented show of power.

Hotchin's lawyers appealed the decision.

Although parts of Hotchin's assets remain frozen, Justice Winkelmann removed the freeze over his household assets, those possesions, such as cars, were sent to Hotchin's family in Australian.

Assets were also released to allow Hotchin to pay his $5 million tax bill.

Hotchin's lawyer Bruce Stewart, QC, said the conference hearing this morning - that was in chambers, meaning it was closed to the public - was to discuss whether the judgment had raised any issues.

Stewart said until the FMA "has made up its mind" on whether it will issue proceedings against Hotchin and what those charges will be, there is nothing else the defence can do at the moment.

The asset preservation orders were put in place to ensure that if any investors wished to take civil action against Hotchin in the future, there would be money available, should they win.

In December, Justice Winkelmann made orders that prohibited Hotchin from dealing with New Zealand-based property held or controlled by him.

It also prohibited family trusts KA3 Trustee and KA4 Trustee and Hotchin's accountant Tony Thomas from dealing with any property they hold on his behalf.

Another conference hearing is scheduled for August 16, at the High Court at Auckland.