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David John Hobbs and Jacqueline Hobbs - Enforceable Undertaking

Page last updated: 13 Jul 2015

The Financial Markets Authority (FMA) has today agreed to accept enforceable undertakings from David John Hobbs and Jacqueline Hobbs, limiting their activities in New Zealand’s financial markets.

Mr and Mrs Hobbs are New Zealand residents and company directors. They have been found liable for serious financial misconduct by the New South Wales Supreme Court for the operation of 14 unregistered, offshore-managed investment funds administered in Australia. The penalties imposed by the court included banning orders against Mr and Mrs Hobbs

Enforceable undertaking

The undertakings given to the FMA require that:

  • Mr Hobbs will not act as a director or promoter of a company in New Zealand permanently and will not provide financial adviser or broking services in New Zealand; and
  • Mrs Hobbs will not act as a director or promoter of a company in New Zealand for 4 years and will not provide financial adviser or broking services in New Zealand.

This is subject to an exception that allows Mr and Mrs Hobbs to continue to operate their Nelson-based car dealership on the specific condition that their business will not:

  • seek to raise funds from or offer any securities or financial products to members of the public; or
  • be involved in providing financial services (including borrowing or lending money) to customers purchasing or selling vehicles through their business.

The full undertakings are available here.

13 July 2015

On the basis of the findings of the Supreme Court of New South Wales, the FMA considers that Mr and Mrs Hobbs have engaged in serious financial misconduct involving false misrepresentations to the investing public.

Mr and Mrs Hobbs have offered to provide the enforceable undertakings, which have been accepted by FMA. Compliance with these undertakings may be enforced through the Courts pursuant to section 47 of the FMA Act. See media release.

21 February 2013

Supreme Court of New South Wales imposed the following penalties against Mr Hobbs and Mrs Hobbs:

  • Mr Hobbs was permanently banned from providing financial services and managing corporations in Australia. Mr Hobbs was also ordered to pay a AU$500,000 pecuniary penalty; and
  • Mrs Hobbs was banned from providing financial services for 8 years and banned from managing corporations for 6 years in Australia. Mrs Hobbs was ordered to pay a AU$20,000 pecuniary penalty.
24 October 2012,

Supreme Court of New South Wales held the Hobbs liable for financial misconduct relating to the operation of 14 individual unregistered offshore managed investment funds administered in Australia.