by Kerry Meadows-Bonner
The FMA issued the formal warning to Vanguard for failing to lodge a required notice on the Disclose Register that it had incurred three ASIC infringement notices last November, for claims about the exclusion of tobacco in its Vanguard International Shares Selection Exclusion Index Funds offered to Australian investors.
The same funds are also offered to New Zealand investors through the Trans-Tasman Mutual Recognition (MRSO) regime and distributed through DIY-investment platform InvestNow.
The MRSO regime allows Australian financial product issuers to operate in New Zealand without needing to comply with all the provisions of the Financial Market Conduct Regulations on the basis that ASIC undertakes core supervisory action.
Under regulation 273(7) of the FMC regulations, Vanguard was required to provide the Disclose Register with notice of enforcement action by the ASIC by the 18th of November 2022. When Vanguard didn’t file the notice, the FMA intervened and the filing was completed in February this year, 55 days after the ASIC infringement notices were issued.
FMA regulatory response executive director Paul Gregory says, there are serious consequences for failing to meet the obligations, and Vanguard’s breach, if not addressed, could harm the integrity of the Trans-Tasman Mutual Recognition regime.
“Compliance with the requirements of the MRSO regime supports fair, efficient and transparent markets in New Zealand, and the FMA will take regulatory action, where necessary. It is important that issuers taking advantage of the MRSO regime understand and attend to their obligations. In this case a formal, public warning was appropriate."
| « Easing emotion in client investment | Tough times ahead for NZ economy: Nikko economist » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved