INVESTING IN GOLD BAND FINANCE – FAQ Frequently Asked Questions
How long has Gold Band Finance been taking investments?
We have been taking investments for over 30 years. In that time, we have NEVER missed an interest payment or not paid out upon maturity. At a time when many New Zealand Finance companies failed to honour their commitments to investors, Gold Band Finance always did.
Who invests in Gold Band Finance?
We have many long-term depositors dating back to the mid 1990s, and have investors with deposits as small as $500, while our largest single depositor is well over one million dollars. We also believe in our own products, with board members, shareholders, the Chief Executive and other staff are among investors in Gold Band Finance.
How experienced are your staff?
Our staff have over 100 years combined experience in the banking and finance sector, with our staff on average working with the company for over 7 years. In fact, two members of our team have been employed with us for over 18 years each. In addition to practical experience, our staff hold academic qualifications ranging from University Diplomas to Bachelors to Masters Degrees, all with focus on either accounting or banking.
Who overviews Gold Band Finance and looks after investors’ interests?
We are governed by a Trust Deed that outlines a number of requirements, benchmarks and minimum ratios. We report monthly to our Trustees, Foundation Corporate Trust and The Reserve Bank of New Zealand. We are audited twice a year by accounting firm PWC.
In addition, Gold Band Finance is regulated by the Reserve Bank of New Zealand by way of the Non-Bank Deposit Takers Act 2013, having been granted a licence by The Reserve Bank in May 2015.
What levels of reserves do you hold?
We currently carry 2.4x more equity than required by The Reserve Bank Act (as at last audited accounts 28/02/2017).
What assets do you lend on?
As at the 28th of February 2017, 62 per cent of our loan book was secured by residential mortgages, while car loans make up 25 per cent of our total asset base.
Are there any loans to any of the directors or their related entities?
No, there are no loans made to any of the directors or their related entities.
Is my deposit safe?
All of our deposits are secured by a first ranking security over all of our assets, subject to certain limited exceptions in our trust deed. This gives investors security against our assets, if necessary to recover their investment.
We stand by our legacy of working for over 30 years to protect our investors’ money. We believe we have the legacy, prudence, governance and legal obligations to be the custodians of our investors’ money returning competitive rates. Deposits rank ahead of shareholders and we have no bank debt.
Why don’t you have a Credit Rating?
Gold Band Finance Limited is exempt from the requirement to have its creditworthiness assessed by an approved rating agency. Gold Band Finance operated under an exemption granted pursuant to the Non-bank Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2016, which recognises that it is unduly onerous for companies the size of Gold Band Finance to have a credit rating as would otherwise be required under the Non-bank Deposit Takers Act 2013. This means that Gold Band Finance Limited has not received an independent opinion of its capability and willingness to repay its debts from an approved source.
Under the Exemption Notice referred to above, the Gold Band Finance group must maintain liabilities of less than $20 million and must maintain a credit ratio of 10% to qualify for the exemption.