The Financial Markets Authority has filed criminal charges against a company and its New Zealand-based director for breaching the Financial Service Providers Act.
The charges carry a maximum fine of $300,000 for a company and a maximum penalty of either $100,000 fine and/or up to a year in jail for the individual.
The FMA alleges the company continued to hold out on two different websites that it was registered on the Financial Service Providers Register (FSPR) after it had been deregistered and despite subsequent warnings from Companies Office regarding misleading statements on its website as to FSPR registration.
Karen Chang, FMA head of enforcement, said, “The FMA will hold directors of companies to account where the company is in breach of the FSP Act and we’re concerned the FSPR is being abused. Our intention to target directors who encourage or facilitate abuse of the FSPR was set out in our report in September 2017, so a clear warning has been given.
"The FSPR has been abused by businesses and individuals who use New Zealand’s reputation as a well-regulated country to target overseas investors. The FMA invests significant time and resources in tackling this problem to protect the legitimacy of New Zealand’s financial services firms.”
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