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Screenshot of a breaking news alert e-mail from Q2 2017
New Zealand’s Financial Markets Authority (FMA) today published its Enforcement and investigations report for fiscal year 2015, with the misuse of the Financial Service Providers Register (FSPR) by offshore entities turning out to be one of the key challenges for the regulator.
Various forms of misuse of the FSPR have led to the watchdog ordering the deregistration of 28 companies from the FSPR in the 12 months to June 30, 2015.
The watchdog notes that:
“We are also concerned that the purpose and function of the FSPR may be misunderstood. It is an administrative registration process that does not involve any regulatory approval. Registration on the FSPR does not mean the company is licensed or regulated by the FMA or any other government agency.”
Talking of FMA-directed deregistration of an investment company, we should mention the case of Forex Trend, an overseas Forex broker that was removed from the register in June this year.
Other highlights in the report include:
- NZ$51,140,000 secured to compensate investors;
- NZ$1,710,625 imposed in penalties and fines;
- The FMA received undertakings or representations from eight directors not to participate in aspects of the financial markets for agreed periods of time;
- Seven directors were prosecuted for failing to file their financial statements;
- The FMA issued public warnings about specific companies, scams, cold- calling, and UK pension transfers.
To view the full report by the FMA, click here.