INVESTING IN GOLD BAND FINANCE – FAQ Frequently Asked Questions
Gold Band Finance Limited is not in the business of providing financial advice, and past performance is not necessarily indicative of future results. We recommend that you should take independent legal and financial advice if required.
How long have you been taking investments?
Close to 40 years. In that time, we have NEVER missed an interest payment nor pay out upon maturity. At a time when many New Zealand Finance companies failed to honour their commitments to their investors, Gold Band Finance did, as it always has.
Who invests in GBF?
We have many long-term depositors dating back to the mid 1990s. We have investors with deposits as small as $5,000; our largest single depositor is well over one million dollars. Board members, shareholders, the Chief Executive and some staff are among investors in GBF.
How experienced are your staff?
The average length of service at GBF for our staff is over 8 years. Staff collectively have over 50 years lending experience. In addition to practical experience, our staff hold academic qualifications ranging from University Diplomas to Bachelors, to Master’s degrees. All with focus on either accounting or banking.
Who overviews GBF and looks after our interests?
We are governed by a Trust Deed that outlines a number of requirements, benchmarks and minimum ratios. We report monthly to our Trustees, Covenant Trustee Services Limited and the Reserve Bank of New Zealand. We are audited twice a year by accounting firm PWC. A copy of our Trust Deed can be viewed here, and is available at the Disclose Register.
In addition, GBF 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?
As at 31/08/24, and at 21.01%, GBF reported a level of capital (reserves) comfortably above both Regulatory (8%) and Supervisory (12%) minimum capital requirements.
On what assets do you lend?
As at 31/8/24, 81% of our loan book was secured by residential mortgages and 19% was secured by personal assets held under Personal Property Securities Act (PPSA) requirements and regulations.
Are there any loans to any of the directors?
There are no loans to directors personally or through any parties associated to any director.
Is my deposit safe?
No one can and should give you such an undertaking. We stand by our legacy of nearly 40 years of protecting 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. Your investment ranks ahead of all creditors (excluding any statutory as required by law) and our shareholders. We have no bank debt.
Credit Rating
A credit rating is an independent opinion of the capability and willingness of an entity to repay its debts (in other words, its creditworthiness). It is not a guarantee that the financial product being offered is a safe investment. A credit rating should be considered alongside all other relevant information when making an investment decision.
GBF has been rated by Equifax Australasia Credit Ratings Pty Limited ("Equifax"). Equifax gives ratings from AAA through to D. The credit rating relates to debt securities GBF issues to investors.
In its latest ratings assessment Equifax confirmed GBF's credit rating of BB- with a stable outlook. A copy of the credit rating can be found here and is available at the Disclose Register.
GBF is required to provide investors with a Credit Risk Statement. The Credit Risk Statement can be found here and is available at the Disclose Register. The Credit Risk Statement contains the scale of credit ratings that Equifax use.