FMA reviews players in Kloogh Ponzi scheme

Consilium and FNZ have largely been exonerated for their roles in the Barry Kloogh Ponzi scheme. However, BNZ does not come out quite so well.

The Financial Markets Authority has released a report examining how third parties had operated in regard to Kloogh’s Ponzi scheme.

The regulator says it identified opportunities for custodians to improve how they meet obligations to provide custody reporting to end investors under the former Financial Advisers Act 2008.

“We identified that Consilium did not receive or hold client money or client property on behalf of advisers or their clients, and therefore did not have obligations under the FA Act and was not a reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism laws.