FMG News
FMG to exit equipment and vehicle finance market
On Friday 27 February 2009, FMG announced that it planned to wind down its operations in the finance market.
"FMG's core strategy is to provide best-of-breed insurance and investment solutions to rural New Zealand," said FMG chief executive Chris Black.
"FMG is able to most effectively contribute to the sustainability of its customers' livelihoods by providing prudent advice on the insurance and investment options that best suit their individual needs. Running a stand-alone finance company does not fit with this strategy," he said.
Mr Black said there will be an orderly wind down of existing business managed by Farmers' Mutual Finance, FMG's specialist finance company, over the next two years.
"All investments continue to be backed by the Crown guarantee, and all debenture holders are due to be paid in full as their investments mature," he said. "Alternative investment options will be available to our customers through FMG's Investment Advisory service." FMG advisors' disclosure statements are available on request and free of charge.
The service provided to existing customers will be maintained, and there will be no impact on FMG’s other areas of business and customers. Mr Black said FMG will work hard to find alternative roles for the employees impacted by the change.
Farmers' Mutual Finance ceased issuing new loans from Friday 27 February 2009, and will continue on a 'business as usual' basis to manage down its existing lending book as debt is repaid.
Customers who would like more information should call FMG's investment service team on 0800 366 444.
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