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.
We issued two sets of civil proceedings in the Auckland High Court against CBL Corporation Limited (in liquidation), the six directors and the chief financial officer, alleging multiple breaches of the Financial Markets Conduct Act 2013. Read the media release.
The High Court ruled to uphold a direction by the FMA to de-register foreign exchange firm FXBTG Financial Limited from the Financial Service Providers Register (FSPR). FMA issued the direction as FXBTG was not providing financial services to New Zealand customers. Read the Media Release.
Steven Robertson was sentenced to six years and eight months in prison, after being convicted on 38 charges related to theft by a person in a special relationship, obtaining by deception, and dishonestly using a document. He was found to have misappropriated funds deposited by clients who believed that those funds were to be traded on their behalf, or were paid as consideration for the purported purchase of shares in PTT Limited or an associated entity. He was also found to have withdrawn funds from credit card accounts of some clients without the client’s authority and knowledge. Read the Media Release.
Circle Markets Limited
We issued a formal warning to a non-licensed derivatives issuer and forex provider, Circle Markets Limited, for compliance failures under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. Read the Media Release.
We cancelled the authorisation of Dunedin-based Mr Barry Edward Kloogh to act as a financial adviser, as a result of concerns regarding compliance with his broker obligations under the Financial Advisers Act 2008. The Serious Fraud Office is investigating the activities of Mr Kloogh, after two companies he was the sole director of were placed into liquidation by the Dunedin High Court following an application by the FMA. Read the Media Release.
Westpac entered into an enforceable undertaking agreed by the FMA and Commerce Commission, outlining the steps the bank must take to refund fees to some 93,000 customers being overcharged $7 million. Read the Media Release.
AxiCorp Financial Services
We suspended the derivatives issuer licence of AxiCorp Financial Services Pty Limited (trading as AxiTrader) for material breaches of the Financial Markets Conduct Act 2013 relating to disclosure, financial statements and auditing, as well as contravention of its licence conditions. Read the Media Release.
ANZ related party transaction
We published the results of our inquiry into disclosure by ANZ of the sale of the property at 269 St Heliers Bay Road by Arawata Assets Limited to Deborah Veronica Walsh (the wife of former CEO, David Hisco), which determined that ANZ New Zealand Group should have disclosed this as a related party transaction in its 2017 financial statements. Read the Media Release.
Eoin Johnson/Promisia Integrative Limited
Eoin Malcolm Miller Johnson admitted to insider trading conduct and breaching a director’s disclosure obligations. He will pay $75,000, in lieu of a penalty, to the Financial Markets Authority (FMA), and is barred for five years from acting as a director, senior manager or consultant for a listed company or any entities regulated by the FMA. Read the Media Release.
Syndicated Trusts Limited
We issued a Stop Order against Syndicated Trusts Limited (STL), ordering the company to stop advertising or accepting money for financial products. This was in response to STL contravening several aspects of the Financial Markets Conduct Act relating to advertising and disclosure. Read the Media Release.
Morgan DeVere Corporate Finance Limited was fined $40,000 following its conviction on two charges of breaching the Financial Services Providers (Registration and Dispute Resolution) Act 2008. A director of the firm was also sentenced to community service. The breaches related to the company claiming it was registered on the Financial Service Providers Register after it had been deregistered and despite subsequent warnings. Read the Media Release.
We issued formal warnings to 10 reporting entities for breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act. Read the Media Release.
Rodney McCall/Morgan Cooper Limited
We laid 21 charges against Rodney McCall 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.
We filed civil proceedings against four individuals in relation to trading in Oceania Natural Limited, alleging breaches of market manipulation prohibitions and disclosure obligations. Read the Media Release.
Following his admission of insider trading, Mark Stephen Talbot entered into an enforceable undertaking, which will see him pay $150,000 in lieu of a penalty and be barred from acting as a director or manager of a listed business for five years. Read the Media Release.
Ross Asset Management/ANZ
As a result of a Supreme Court decision, we established the right to share information about ANZ’s role as banker to Ross Asset Management during the period David Ross was operating a Ponzi scheme, so investors could make their own informed decisions and pursue their own claim. In July, proceedings were filed against ANZ on behalf of eligible investors. Read the Media Release.
Viaduct Capital & Mutual Finance
Paul Bublitz was jailed, and Bruce McKay and Richard Blackwood were sentenced to home detention after being found guilty for their roles in theft and deliberate misconduct in dealing with funds invested by the public, and abuse of the Crown Retail Deposit Guarantee Scheme. The Court of Appeal subsequently acquitted Blackwood, and set aside convictions against Bublitz on two charges but upheld a further four convictions. Bublitz’s sentence was reduced to 11 months’ home detention, taking into account time already served and the long duration of the case. Read the Media Release.
South and Provan
Robert Ian South and Murray Byron Provan received prison sentences after being found guilty for their roles in an investment scam that involved receiving money from two elderly women for an investment opportunity that did not appear to exist. Read the Media Release.