Private eye's advert attracts watchdog

By SIMON HENDERY

The Securities Commission is interested in a mysterious newspaper advertisement asking insurance policy holders for $67.

The advertisement, in yesterday's Business Herald, was placed by investigation firm Peter Ward & Associates and asks insurance company policy holders and shareholders to "help us investigate" by paying an annual $67 registration fee.

"We have a program [sic] under way to register all policyholder and shareholder interests in order to bring matters before the courts," the advertisement says.

"These matters include arguments about the validity of life office policy wording changes and deletions."

The advertisement quotes from a 1997 Securities Commission paper, including the statement: "There are a number of ways life offices can protect themselves from insolvency. They can use cop out or weasel clauses."

Securities Commission senior executive (operations) Norman Miller said the quotes were taken from the commission's 1997 discussion paper on life insurance and law practices but the "cop out or weasel clauses" statement was a record of a submission made to the commission.

Miller said the commission would probably write to the firm expressing its concern at the use of the quote.

Peter Ward & Associates' sole shareholder and director, former Auckland CIB head Peter Ward, would not comment on the advertisement yesterday.

Brian Maskell of Strategic Development Focus, the Rotorua firm which hired Ward, said yesterday he planned to build up a register of policyholders so that a class action could be mounted against unnamed financial services companies.

Policyholders taking part could expect to gain 30 per cent on top of the value of their existing policy, he said, as well as peace of mind.