INVESTING IN GOLD BAND FINANCE – FAQ Frequently Asked Questions
How long have you been taking investments?
Over 30 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.
Who invests in GBF?
We have many long term depositors dating back to the mid 1990s. We have investors with deposits as small as $500; our largest single depositor is well over $1 million. 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 7 years. Two of our team have been employed here over 18 years each. Staff have over 100 years combined experience in the banking and finance sector. 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 GBF 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, Covenant Trustee Services and The Reserve Bank of New Zealand. We are audited twice a year by multi-national accounting firm PWC.
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?
GBF currently carries 2.3x more equity than required by The Reserve Bank Act. (As at last audited accounts 31/8/18).
What do you lend on?
As at 31/8/18 84.4% of our loan book was secured by residential mortgages. Car loans make up 6.8% of our total asset base.
Are there any loans to any of the directors staff or their related entities?
Is my deposit/investment safe?
All 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 over 30 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. Deposits rank ahead of shareholders and we have no bank debt.
No Credit Rating
Gold Band Finance Limited is exempt from the requirement to have its creditworthiness assessed by an approved rating agency. Gold Band Finance operates 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.