Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


A second contributory mortgage broker pleads guilty

News release
26 March 2014

A second contributory mortgage broker pleads guilty

First Mortgage Investments Limited, a contributory mortgage broking firm, has been convicted and fined $4,000 plus court costs for failing to deliver its annual report to the Registrar of Companies by 30 June 2013. First Mortgage pleaded guilty to the charge laid by the Financial Markets Authority (FMA).

The charge against First Mortgage was brought under the Securities Act (Contributory Mortgage) Regulations. The maximum fine is $5,000. The conviction was entered in the Auckland District Court on 20 March 2014.

Reporting and disclosure by contributory mortgage brokers, including the filing of annual reports, is an important part of the regulatory regime governing contributory mortgage brokers. It gives investors and potential investors information that enables them to understand the details of a broker’s financial position and is relevant to investment decisions.

FMA Head of Enforcement, Belinda Moffat, said: FMA seeks to raise standards of conduct in the market by encouraging compliance with financial markets’ legislation. However, where there is persistent non-compliance, FMA will take enforcement action.

“This conviction is a reminder to anyone taking investments from the public of the importance of fully and accurately disclosing financial information. It also reminds people of the consequences of failing to comply,” Ms Moffat said.


Ends


Background

The Regulations are made under the Securities Act and regulate the offer to the public of interests in contributory mortgages and prescribe the requirements relating to the management of such interests.

Under a contributory mortgage, a number of investors contribute to a larger sum, which is then advanced to borrowers.

Regulation 12 of the Securities Act (Contributory Mortgage) Regulations requires contributory mortgage brokers to deliver an annual report to the Registrar of Companies. The annual report must comply with the Regulations and must include audited financial statements.

In the case of individuals, the annual report must be delivered not later than the 31st day of May each year. In the case of contributory mortgage brokers who are not individuals the annual report must be delivered not later than 3 months after the end of the contributory mortgage broker’s financial year.

The implementation of the Financial Markets Conduct Act 2013 does not affect the requirement for contributory mortgage brokers to deliver annual reports under the Regulations i.e. the filing obligations on contributory mortgage brokers remain unchanged.

Prudential Mortgage Limited was convicted of a similar offence on 5 March 2014.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news