FMA files charges under the Financial Service Providers Act

Media Release
MR No. 2017 – 09
16 March 2017

FMA files charges under the Financial Service Providers (Registration and Dispute Resolution) Act

The FMA has filed charges against Mr Patterson in the Christchurch District Court. The FMA alleges Mr Patterson was, or was holding out as being, in the business of providing financial services in contravention of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act). The charges relate to various insurance policies between 1 July 2013 and 28 May 2015. The first Court appearance was today.

The charges are:

(1) Section 11 of the FSP Act – no being in the business of providing financial service(s) unless registered and a member of an approved dispute resolution scheme; and

(2) Section 12 of the FSP Act – no holding out that in the business of providing financial service(s) unless registered and a member of an approved dispute resolution scheme.

Nick Kynoch, FMA, General Counsel, said, “To be in the business of providing financial services, individuals must be registered and - in some instances - belong to an approved dispute resolution scheme under the FSP Act and the Financial Advisers Act 2008.

“These are legal requirements, they are not optional. The FMA has a range of tools available to deal with compliance issues. In this case, we decided it was appropriate to bring charges.”

The FMA also filed charges alleging obstruction(s) to its information gathering powers under the Financial Markets Authority Act 2011 (FMA Act). These charges relate to the FMA’s investigation into Mr Patterson’s conduct.

These two charges are under Section 61(1)(d) – refusing or failing to appear before the FMA (at an interview required under a notice under section 25(1)(d) of the FMA Act) without reasonable excuse.

ENDS

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