FMA pings adviser for unauthorised advice

James Greig.

However, the Financial Markets Authority (FMA) stopped short of taking court action against the firm saying an official public censure and remedial action taken by the firm would be an appropriate penalty.

According to the FMA's director of supervision James Greig, the Wellington-based firm was censured after it found one of FoxPlan’s Auckland-based nominated representatives had provided an investment planning service to some clients since mid-2018.

Under the Financial Advisers Act (FA Act) 2008, only Authorised Financial Advisers (AFA) are permitted to provide this service, which involves designing a plan based on an individual’s financial situation and identification of the individual’s investment goals.

Additionally, the FMA found four of FoxPlan’s representatives wrongly informed clients they were an AFA or financial planner, and the FMA had reason to believe FoxPlan’s AFAs failed to comply with disclosure obligations.