Background
The Financial Markets Authority (FMA) prosecuted Garry James Patterson for unlawfully providing financial services and obstructing a regulatory investigation. The offending occurred between 1 July 2013 and 28 May 2015 and involved multiple insurance policies. During this period, Mr Patterson held himself out as being entitled and qualified to provide financial advice, despite not being registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act) nor being a member of an approved dispute resolution scheme. As a result, customers reasonably believed they were dealing with a registered financial adviser.
The FMA’s investigation was initiated following a complaint and was subsequently obstructed by Mr Patterson’s refusal or failure, without reasonable excuse, to attend a compelled interview under a statutory notice issued pursuant to section 25 of the Financial Markets Authority Act 2011. This conduct constituted a separate offence.
Mr Patterson pleaded guilty to two charges and was sentenced in the Christchurch District Court to 200 hours’ community work and three months’ community detention. In relation to the obstruction charge, he was convicted and discharged, with the court taking into account his limited financial means. The sentencing judge noted that Mr Patterson had a degree of knowledge of his wrongdoing and that his conduct undermined both individual customers and confidence in the financial markets as a whole.
The FMA also issued a public warning to Jonathan Simon Antony Branton-Casey, who facilitated Mr Patterson’s offending and failed to meet the standard of care, diligence, and skill expected of a reasonable financial adviser. Mr Branton-Casey voluntarily de‑registered as a financial adviser and cooperated with the FMA’s investigation and prosecution. In light of these factors, the FMA determined that a public warning, rather than court action, was in the public interest.
