Enforcement activity

CLSA Premium New Zealand Limited (formerly KVB Kunlun)

We filed civil High Court proceedings against CLSA Premium New Zealand Limited (formerly KVB Kunlun) for alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act. Read the media release. 

Rodney McCall/Morgan Cooper Limited

Rodney McCall pled guilty to charges brought by the FMA related to deceptively obtaining funds that he purported to be investing. He was neither authorised nor licensed to make investments on behalf of others. Read the media release. 

Steven Robertson

The Court of Appeal decided to dismiss a sentence appeal by Steven Robertson, who defrauded victims of $2.1 million through PTT Limited. Read the media release.

ANZ

We filed High Court proceedings against ANZ Bank New Zealand, alleging the bank charged some customers for credit card repayment insurance policies that offered those customers no cover. Read the media release.

Warning to Authorised Financial Adviser

We issued a formal warning to a financial adviser who made recommendations to clients that they urgently move their investments to ‘low risk’ funds in the wake of COVID-19, and failed to clarify that the advice may not be suitable for all clients. Read the media release.

AML warning

We issued a formal warning to Tiger Brokers (NZ) Limited for failing to have several adequate anti-money laundering (AML) protections in place. We also privately warned six other businesses for their AML practices, mainly due to late auditing of their systems and controls. Read the media release.

CBL

We issued two sets of civil proceedings in the Auckland High Court against CBL Corporation Limited (in liquidation), the six directors and the chief financial officer, alleging multiple breaches of the Financial Markets Conduct Act 2013. Read the media release.

FXBTG Financial

The High Court ruled to uphold a direction by the FMA to de-register foreign exchange firm FXBTG Financial Limited from the Financial Service Providers Register (FSPR). FMA issued the direction as FXBTG was not providing financial services to New Zealand customers. Read the Media Release.

Steven Robertson

Steven Robertson was sentenced to six years and eight months in prison, after being convicted on 38 charges related to theft by a person in a special relationship, obtaining by deception, and dishonestly using a document. He was found to have misappropriated funds deposited by clients who believed that those funds were to be traded on their behalf, or were paid as consideration for the purported purchase of shares in PTT Limited or an associated entity. He was also found to have withdrawn funds from credit card accounts of some clients without the client’s authority and knowledge. Read the Media Release.

Circle Markets Limited

We issued a formal warning to a non-licensed derivatives issuer and forex provider, Circle Markets Limited, for compliance failures under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. Read the Media Release.

Barry Kloogh

We cancelled the authorisation of Dunedin-based Mr Barry Edward Kloogh to act as a financial adviser, as a result of concerns regarding compliance with his broker obligations under the Financial Advisers Act 2008. The Serious Fraud Office is investigating the activities of Mr Kloogh, after two companies he was the sole director of were placed into liquidation by the Dunedin High Court following an application by the FMA. Read the Media Release.

Westpac

Westpac entered into an enforceable undertaking agreed by the FMA and Commerce Commission, outlining the steps the bank must take to refund fees to some 93,000 customers being overcharged $7 million. Read the Media Release.

AxiCorp Financial Services

We suspended the derivatives issuer licence of AxiCorp Financial Services Pty Limited (trading as AxiTrader) for material breaches of the Financial Markets Conduct Act 2013 relating to disclosure, financial statements and auditing, as well as contravention of its licence conditions. Read the Media Release.

ANZ related party transaction

We published the results of our inquiry into disclosure by ANZ of the sale of the property at 269 St Heliers Bay Road by Arawata Assets Limited to Deborah Veronica Walsh (the wife of former CEO, David Hisco), which determined that ANZ New Zealand Group should have disclosed this as a related party transaction in its 2017 financial statements. Read the Media Release.

Eoin Johnson/Promisia Integrative Limited

Eoin Malcolm Miller Johnson admitted to insider trading conduct and breaching a director’s disclosure obligations. He will pay $75,000, in lieu of a penalty, to the Financial Markets Authority (FMA), and is barred for five years from acting as a director, senior manager or consultant for a listed company or any entities regulated by the FMA. Read the Media Release.

Syndicated Trusts Limited

We issued a Stop Order against Syndicated Trusts Limited (STL), ordering the company to stop advertising or accepting money for financial products. This was in response to STL contravening several aspects of the Financial Markets Conduct Act relating to advertising and disclosure. Read the Media Release.

Morgan DeVere

Morgan DeVere Corporate Finance Limited was fined $40,000 following its conviction on two charges of breaching the Financial Services Providers (Registration and Dispute Resolution) Act 2008. A director of the firm was also sentenced to community service. The breaches related to the company claiming it was registered on the Financial Service Providers Register after it had been deregistered and despite subsequent warnings. Read the Media Release.

AML/CFT warnings

We issued formal warnings to 10 reporting entities for breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act. Read the Media Release.

Rodney McCall/Morgan Cooper Limited

We laid 21 charges against Rodney McCall related to deceptively obtaining funds that he purported to be investing. He was neither authorised nor licensed to make investments on behalf of others. Read the Media Release.

Forestlands

The Financial Markets Authority (FMA) has filed criminal charges against an individual in relation to the Forestlands group of companies, for alleged disclosure and financial record keeping breaches. Read the media release.