Fedbond – stays the same…

The FSB says that the Pretoria High Court has again extended the order issued on 4 February 2004 until 21 June 2005, with minor adjustments.

This order provisionally placed the collective investment scheme business of Fedbond Participation Mortgage Bond Managers (Pty) Ltd (Fedbond) and Fedbond Nominees (Pty) Ltd under the joint management and control of Edwin Marcus Letty and Fedbond.

According to the FSB the reason for the order having been extended is that more time is needed to resolve certain issues that could have an impact on the financial soundness of the scheme.

The extension of the court order means that the status quo since 4 February 2004 remains unchanged. No new investments may be taken in by the scheme and capital may not be repaid to investors other than at the discretion of management in cases of significant hardship.

The monitor has to report back to the court on a number of matters specified in the order, on 21 June 2005.