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06 June 2019

Morgan DeVere Corporate Finance Limited and director Rene Moorby

Background

This case concerns enforcement action taken against Morgan DeVere Corporate Finance Limited and its New Zealand‑based director, Rene Moorby, for breaches of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act).

The Financial Markets Authority (FMA) alleged that the company continued to represent itself as being registered on the Financial Services Providers Register (FSPR) after it had been deregistered, despite receiving warnings from both the Registrar of the FSPR and the FMA. Under section 12 of the FSP Act, no person or entity may hold itself out as a registered financial service provider unless it is formally registered and a member of an approved dispute resolution scheme.

On 6 June 2019, Morgan DeVere Corporate Finance Limited was fined $40,000 after being convicted on two charges of breaching the FSP Act for falsely claiming registration on the FSPR. A Wellington District Court decision relating to the matter was published on 3 May 2019.

Separately, director Rene Moorby was charged with breaching sections 12 and 40 of the FSP Act. Section 40 addresses a director’s liability where they knowingly authorise or fail to prevent offending by a company. Mr Moorby pleaded guilty and, in April 2019, was sentenced to 75 hours of community service for his role in the offending.

The enforcement action followed a sequence of regulatory steps, beginning with charges filed by the FMA in May 2018, a court hearing scheduled for August 2018, and subsequent proceedings in the Wellington District Court through to final sentencing and penalties in 2019. The case underscores regulatory expectations that financial service providers and their directors ensure registration status

Timeline

6 June 2019

Morgan DeVere Corporate Finance Limited has been fined $40,000 on two charges of breaching the Financial Services Providers (Registration and Dispute Resolution) Act 2008 (FSP Act).

Morgan DeVere continued to claim it was registered on the Financial Services Providers Register (FSPR) after it had been deregistered and despite subsequent warnings from the Financial Markets Authority (FMA) and the Registrar of the FSPR.

Section 12 of the FSP Act states that no person, including a corporation, can hold out that it is registered under the FSP Act unless it is registered on the FSPR and a member of an approved dispute resolution scheme.

The New Zealand-based director of the company, former Wellington real estate agent Rene Moorby pleaded guilty and was sentenced to 75 hours of community service in April 2019 for his part in the offending.

3 May 2019

Morgan DeVere Corporate Finance Limited PDF. Morgan DeVere has been convicted on two counts of breaching the FSP Act for falsely claiming it was registered on the FSPR.

16 April 2019

A New Zealand-based director of Morgan DeVere Corporate Finance Limited has been sentenced to 75 hours of community service for breaching the Financial Service Providers (Registration and Dispute Resolution) Act 2008. (FSP Act). The FMA alleges that the company stated it was registered on the Financial Services Providers Register (FSPR) after it had deregistered.

Director Rene Moorby was charged with one count of breaching sections 12 and 40 of the FSP Act. Mr Moorby, who has worked as a Real Estate agent in Wellington, pleaded guilty at a hearing at Wellington District Court on the 11th April 2019.

Section 12 of the FSP Act provides that no person, including a corporation, can hold out that it is in the business of providing a financial service unless it is registered on the FSPR and a member of an approved dispute resolution scheme. Section 40 of the FSP Act covers a director’s liability if he/she knowingly authorises or fails to prevent a corporation from committing an offence under the Act.

Morgan DeVere Corporate Finance Limited, as a company, has pleaded not guilty to two counts of breaching section 12 of the FSP Act. That case is set for the 23rd April at Wellington District Court.

The FMA alleges the company continued to state it was registered on the FSPR on its website after it had been deregistered and despite subsequent warnings from the Registrar of Financial Services Providers (Registrar) and the FMA.

11 April 2019 

Director Rene Moorby was charged with one count of breaching sections 12 and 40 of the FSP Act. Rene was sentenced to 75 hours of community service.

23 August 2018

Hearing to be held at the Wellington District Court.

15 May 2018

Charges filed in court: The FMA filed charges in the Wellington District Court. The FMA alleges that the company stated it was registered on the Financial Services Providers Register (FSPR) after it had deregistered.