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Media Statement Vision Securities depositors covered by Crown’s guarantee scheme

1 Apr 2010

All eligible Vision Securities Limited depositors will get 100 per cent of the money they are entitled to under the Crown retail deposit guarantee scheme, Treasury Director of Financial Operations Dr Brian McCulloch said today.

The trustee for Vision Securities Limited has announced the appointment of receivers to the company. That constitutes a default event under its Crown Deed of Guarantee, triggering the Crown’s guarantee.

Eligible depositors with Vision Securities will be contacted within six weeks and provided with information about how to claim under the terms of the Crown retail deposit guarantee.

Vision Securities is an Auckland based financial institution with around 1,000 depositors and approximately $30 million in deposits. The Crown retail deposit guarantee does not cover any new deposits or the roll-over of existing deposits after the default of the company.

“The Crown stands fully behind its guarantee commitments, and we expect an orderly process of payment to eligible Vision Securities depositors,” said Dr McCulloch.

“In circumstances such as this, when the guarantee is triggered, it is important to remember that it is the eligible depositors that are guaranteed rather than the company. The Crown retail deposit guarantee scheme was introduced to maintain depositor confidence by protecting eligible depositors.

“Over the life of the scheme, exits, mergers and wind-downs will occur. This is normal financial sector activity and is expected to continue even though the guarantee scheme is in place,” said Dr McCulloch.

ENDS

Contact:

Angus Barclay | Senior Communications Advisor
Tel: +64 4 917 6146
Mob: +64 (0)27 337 1102
Email: angus.barclay@treasury.govt.nz
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