Top businessman Peter Huljich has admitted using his own money to top up his company's three KiwiSaver funds, which have become the first to be investigated by the Securities Commission.
Mr Huljich, who is a director of Huljich Wealth Management along with Auckland city Mayor John Banks and former National Party leader Don Brash, moved this week to explain his actions.
This comes two weeks after allegations emerged claiming the company artificially boosted its figures to attract more savers.
Mr Huljich has denied this and says he provided "compensation" because he felt "morally responsible" for two "disappointing" investment decisions.
The company withdrew its prospectus late on Thursday but had released an amended version by yesterday afternoon amid investigations by the Securities Commission.
The Securities Commission said it was still seeking further information on the transactions and had yet to decide whether the company had broken the law.
"At this stage there is no indication that investors have lost any money as a result of these disclosure issues.
"The commission is looking into whether certain income that was received by the fund was incorrectly reported as investment income in the presentation of historical investment returns for the fund."
Mr Banks, who is a shareholder in the company and listed as executive director on the company's website, yesterday said he did not know what Peter Huljich was doing.
Mr Banks said he did not work in the day-to-day running of the company.
"I accept, of course, my share of responsibility for this non-disclosure.
"Of course I don't resile from that . . .
"The company has made a full and comprehensive statement.
"The financial statements have been updated.
"Not one single investor has been disadvantaged."
Mr Banks, who is standing to be the first mayor of the Auckland Super City this year, denied being an executive director.
The website reference was "unfortunate", he said, "because I don't work down there".
He is also listed in a Huljich KiwiSaver prospectus as executive director.
The website said "John brings invaluable public and private sector experience, and sound business judgement to Huljich Wealth Management".
Bruce Sheppard, of the New Zealand Shareholders Association, said high profile people like Mr Banks had to be careful about what they became involved in.
"If you have a brand, which he does, you actually have to be careful who you lease it to."
Labour Commerce spokesperson Lianne Dalziel said she had concerns about "celebrity directors".
"What they do is, by virtue of their background, give a degree of assurance around the governance that isn't always there."
