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Forsyth Barr makes Credit Sails Claim

June 17, 2013

Forsyth Barr makes Credit Sails Claim

By: Tim Hunter, Fairfax NZ News Media, 17 June 2013

 

Sharebroker Forsyth Barr has made a claim on its insurer AIG relating to a $60 million settlement for investors in failed financial product Credit Sails.

 

It is understood AIG’s insurance investigators have begun interviewing investors to help assess the merits of the claim.

The record settlement in December last year ended legal action by the Commerce Commission alleging misleading and deceptive conduct in the product’s marketing.

 

The $60m payout was agreed by Forsyth Barr and subsidiaries of French bank Credit Agricole, who were responsible for offering Credit Sails in New Zealand. It is not known how much each contributed to the payout.

 

AIG declined to comment on Forsyth Barr’s claim but confirmed it was being considered.

 

In a statement, AIG said it was not involved in the settlement.

“It is Forsyth Barr’s loss that has resulted in the current open claim with AIG Insurance New Zealand Limited,” the company said.

 

“The commercial and contractual business relationships that AIG has with all its customers involve a due process for all parties to follow to conclusion.

 

“This process does not allow for comment on open claims.”

Forsyth Barr managing director Neil Paviour-Smith could not be reached for comment.

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