Daily Briefing, Monday February 04, 2008

Today we’ll focus on the news about finance company MFS Pacific.
Late on Friday it told the stock exchange that it had failed to make the interest payments due last week because its parent MFS Ltd had withdrawn support.
This is disastrous news for more than 12,000 investors who have at least 1 million tied up in MFS Pacific. That’s because MFS Pacific has promised until now that it was backed by listed Australian group MFS Ltd and that made it safer than many other New Zealand finance companies.
It’s also a major problem for many investors with the MFS-owned Vestar group of financial advisers. That includes those with the former Northplan and Swains groups. You might recall that Vestar had promised to top up the capital of those investors who had lost money with Bridgecorp and other failed finance companies