The Financial Markets Authority has warned the directors of failed finance company St Laurence instead of taking court action.

St Laurence collapsed into receivership in 2010 owing $212 million to more than 9000 debenture-holders, of which its receivers recovered 16.7 cents in the dollar ($35.4m). It is in liquidation.

The authority has closed its investigation into the company and has formally warned eight directors over what it describes as potential breaches of the Securities Act.

It said that based on the evidence it had seen, it considered that St Laurence’s September 2007 prospectus failed to properly disclose information about loan quality and liquidity for the period from March to June 2008. [Read more…]