These charges relate to a company and its New Zealand based director for breaches of the Financial Service Providers (Registration and Dispute Resolution) Act.
In the North Shore District Court, Judge Jelas sentenced Pegasus Markets to a fine of $200,000. The judge said, "New Zealand cannot be a country where breaches of its financial markets regulatory systems can be an acceptable commercial consequence. The Court’s response to breaches needs to be sufficient to ensure financial operators in the New Zealand market will incur real and meaningful consequences if they breach the regulatory framework."
Mr Reps is due to be sentenced in 2021.
Pegasus Markets Ltd and its New Zealand-based director, Michael Reps, were found guilty of all criminal charges brought by the FMA for breaches to the Financial Service Providers (Registration and Dispute Resolution) Act (FSP Act).
In the North Shore District Court, Judge Jelas found Pegasus guilty of two charges of breaching section 12 of the FSP Act, which states that no one can purport to hold out as registered on the FSPR unless they are registered on the FSPR and a member of an approved dispute resolution scheme.
Mr Reps was also found guilty of breaching section 40, for knowingly failing to prevent Pegasus from committing an offence under the Act.
See media release
The case remains before the North Shore District Court.
Hearing to be held at the North Shore District Court.