Enforcement activity

CLSA Premium New Zealand Limited (CLSAP NZ) has admitted to breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, following proceedings brought by the Financial Markets Authority – Te Mana Tātai Hokohoko (FMA). Read the media release.

Rockfort Markets

We directed licensed derivatives issuer Rockfort Markets to remove or amend misleading advertising statements on its social media channels and website. Read the media release.

Code of Conduct breaches

The Financial Advisers Disciplinary Committee censured an Authorised Financial Adviser for breaches of the Code of Professional Conduct for Authorised Financial Advisers. Read the media release.

Financial adviser warning

We issued a public warning to a financial adviser due to advice he gave clients in relation to their KiwiSaver and other investments following COVID-19 market volatility. Read the media release.

Reps

Michael Reps, the New Zealand-based director of Pegasus Markets Limited, was sentenced to two months’ community detention and 90 hours’ community work for breaches to the Financial Service Providers (Registration and Dispute Resolution) Act. Read the media release.

ANZ New Zealand

Auckland High Court ordered ANZ New Zealand to pay a $280,000 penalty for breaching the Financial Markets Conduct Act 2013 in relation to its supply of credit card repayment insurance to certain bank customers. Read the media release.

NZX

We published a review of the NZX, which found the stock exchange failed to meet its licensed market operator obligations due to insufficient technology resources. Read the media release.

Code of Conduct breaches

The Financial Advisers Disciplinary Committee published its decision regarding a case brought by the FMA, relating to alleged breaches of the Code of Professional Conduct for Authorised Financial Advisers. Read the media release.

Robertson and McCall

As a result of two court decisions, victims of convicted fraudsters Steven Robertson and Rodney McCall will receive a portion of their money back. McCall was also sentenced to 12 months’ home detention for his crimes. Read the media release.

Market manipulation warning

We issued a formal warning to an individual for conduct that was likely to have amounted to market manipulation. Read the media release.

Fund Managers Otago

We appointed a temporary manager to manage three schemes previously operated by Fund Managers Otago Limited. The schemes’ supervisor, Trustees Executors Limited, determined it was in the best interests of investors to remove FMO as manager of those schemes. Read the media release.

CLSA Premium NZ Limited (formerly KVB Kunlun)

After finding CLSAP NZ failed to meet some of its audit and assurance obligations, we imposed conditions on its derivatives issuer licence that prevent the firm from making an offer to, or receiving further funds from, retail investors in relation to derivatives. Read the media release

Forestlands

We 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.

Pegasus Markets Ltd

Pegasus Markets Ltd and its New Zealand-based director Michael Reps were found guilty of criminal charges brought by the FMA for breaches of the Financial Service Providers (Registration and Dispute Resolution) Act. Read the media release

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.