Page last updated: 16 August 2022

Enforcement Activity

Enforcement is not just about court action. We use a wide range of functions and powers including:

  • revoking and suspending licences
  • criminal prosecution and civil proceedings
  • formal warnings – private and public
  • imposing conditions
  • giving directions
  • stopping promotion or distribution of financial products and services.

The action we take is informed by the level of potential harm caused by poor conduct or illegal activity.

Enforcement activity
PTT Limited, Steven Robertson and related parties
Four companies were placed in liquidation over breach of financial markets legislation and case filed under Crimes act against Steven Robertson with t
Forestlands
FMA has referred some matters to the Serious Fraud Office and will continue to complete its inquiries in relation to financial markets issues. See lat
Rodney McCall and Morgan Cooper Limited
The FMA alleges Mr McCall contacted people and convinced them to ‘invest’ by transferring money into bank accounts he controlled. After incorporat
Pegasus Markets Limited and Director Michael Reps
The FMA alleges Pegasus Markets Limited continued to hold out on two different websites that it was registered on the FSPR after it had been deregiste
Barry Kloogh (Financial Planning Limited and Impacted Enterprises Limited)
Mr Kloogh was offering brokering services to clients through the first defendant, Financial Planning Ltd, and the second defendant, Impact Enterprises
Westpac - Enforceable undertaking
Westpac accepted that it may have contravened fair dealing provisions of the Financial Markets Conduct Act (FMCA) and/or possible breaches relating to

View all Enforcement Activity

 

 

Timeline of enforcement activity

High Court dismisses appeal against FMA direction order

We welcomed a High Court ruling upholding an FMA direction order against property development and investment company Du Val, dismissing all Du Val’s grounds of appeal. View media release.

Fair dealing breaches for credit card repayment insurance

OnePath Life (NZ) Limited and Cigna Life Insurance New Zealand Limited will jointly pay $180,000 to the FMA after admitting liability for breaching the fair dealing provisions of the Financial Markets Conduct Act 2013 (FMCA). View media release.

Stop order issued

We made a stop order against The One Management GP Limited regarding an offer in relation to The One Property LP (the Fund), which is only available to wholesale investors, including eligible investors. View media release.

Infringement notice against crowdfunding platform issued

We issued another infringement notice to Equitise Pty Ltd for failing to file financial statements on time, amid broader concerns about the firm’s ability to meet regulatory reporting deadlines. View media release.

Censures for derivatives issuer licence breaches

We censured CTRL Investments Limited for contravening the conditions of its derivatives issuer (DI) licence. We were satisfied that CTRL had materially contravened two standard conditions of its licence by failing to comply with requirements for certain outsourcing arrangements and allowing clients who did not understand derivatives and associated risks, to trade. View media release.

Directions to remove misleading advertising and improve compliance processes

We directed Simplicity NZ Limited to remove advertising materials that breached fair dealing provisions and ensure future advertising is compliant. View media release.

Two individuals to pay penalties for market manipulation and disclosure breaches

Zhongyang (Sean) Meng and Jiashun (Sam) Qian have been ordered to pay pecuniary penalties of $180,000 and $130,000 respectively for market manipulation and disclosure breaches involving Oceania Natural Limited (ONL) shares. View media release.

Interim stop order issued

We issued an interim stop order to The One Management GP Limited and James Law Realty regarding an offer in relation to The One in Longhorn Partnership Fund (‘the Fund’), which is only open to wholesale investors, including eligible investors. View media release.

Two individuals trading Pushpay shares

We filed proceedings against two individuals for alleged insider trading in relation to the sale of shares in Pushpay Holdings Limited (NZX:PPH). The individuals have been granted interim name suppression until the first court appearance. Read media release

Wisdom House Investment Partners

We cancelled the transitional financial advice provider (FAP) licence of Wisdom House Investment Partners Limited, after its sole financial adviser engaged in serious misconduct at his previous employer. Read media release.

Squirrel P2P Trustee

FMA formally warned Squirrel P2P Trustee Limited for failing to carry out certain obligations as a custodian. The entity provides a custodial service for the peer-to-peer lending service of Squirrel Money Limited. Read media release

Medical Kiwi

Medicinal cannabis company Medical Kiwi Limited admitted to breaching the fair dealing provisions of the Financial Markets Conduct Act (FMCA). In August 2020, Medical Kiwi launched an offer for shares on equity crowdfunding platform PledgeMe Ltd. The accompanying information memorandum and campaign page contained false and misleading statements in relation to Medical Kiwi’s medicinal cannabis licenses and its contractual arrangements. Read media release.

Du Val

FMA directed property development and investment company Du Val to remove advertising materials likely to mislead or deceive investors. We considered statements by Du Val in relation to its Mortgage Fund Limited Partnership (“fund”) contravened ‘fair dealing’ provisions in the Financial Markets Conduct Act because they created the impression investing in financial products connected to property development was low risk. In fact, property development, including associated finance, is inherently risky. Read media release.

Firma NZ

We censured Firma Foreign Exchange Corporation (NZ) Limited after finding it had materially contravened a number of its obligations as a licensed derivatives issuer (DI). Read media release

Jarden

FMA censured Jarden Securities Limited for contraventions by OM Financial Limited (OMF) as a licensed derivatives issuer (DI). OMF co-mingled derivative investor money with its own money, a breach of its DI obligations. Read media release.

CLSAP

CLSA Premium New Zealand Limited (CLSAP NZ) was ordered to pay a total pecuniary penalty of $770,000 for breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, following proceedings brought by the FMA. Read media release.

Matthew Geoffrey Hill

FMA filed civil High Court proceedings against Matthew Geoffrey Hill, the Chief Executive Officer of NZX-listed New Talisman Gold Mines Limited (NTL), for alleged information-based market manipulation and making false and misleading representations. The case relates to anonymous posts Mr Hill allegedly made about the company on the Sharetrader website’s online investor forum. Read media release.

Sharesies

FMA issued a formal warning to Sharesies Limited and Sharesies Nominee Limited for failing to have sufficient anti-money laundering procedures, policies, and controls in place. Read media release.

AIA

Life insurer AIA admitted making false and/or misleading representations to customers in proceedings brought by the FMA. The case is based on breaches regarding incorrect and misleading communication to customers holding various life insurance and associated policies. Read the media release.

FoxPlan

We formally censured Wellington-based financial services firm FoxPlan Ltd, after one of its nominated representatives provided services they were not permitted to give and other representatives offered services to clients they were not permitted to give. Read the media release.

Equitise

We issued an infringement notice to equity crowdfunding service provider Equitise Pty Ltd for failing to file financial statements by their due date. Read the media release.

Fund Managers Otago

We cancelled the managed investment scheme manager licence of Fund Managers Otago (FMO). We considered FMO’s material contraventions and determined it was no longer capable of being a fund manager. Read the media release.

Stephen Robertson/PTT

The Supreme Court dismissed a sentence appeal by Steven Robertson of PTT Limited, bringing the matter to a close. Robertson defrauded 22 victims of approximately $1.5 million and was sentenced to six years and eight months’ imprisonment, with a minimum term of three years and four months’ imprisonment. Read the media release.

CLSA

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.