| Business News | Thursday July 5 2012 13:27
The Financial Markets Authority is trying to recover $25 million in related party loans, made by Perpetual Trust Limited as trustee of the Perpetual Cash Management Fund.
Perpetual is a subsidiary of Pyne Gould Corporation.
A High Court judgment has discharged confidentiality orders surrounding the case.
The FMA says the loans, particularly to Torchlight Fund, were not in the best interests of investors.
It feels the circumstances in which they were made by Perpetual reflects a lack of judgment, and lack of understanding of its role as trustee of funds of this nature.
Torchlight has repaid around half of the total amount, but around $13 million remains outstanding.