FMA issues infringement notice to Pacific Eagle Capital

FMA issues infringement notice to Pacific Eagle Capital

The Financial Markets Authority (FMA) has issued an infringement notice to Pacific Eagle Capital (PEC) for failing to file financial statements by its due date.

PEC was required to file financial statements for the balance date of 31 March 2018 by the 31st July 2018. At the date of publication above, it has yet to file its financial statements.

This is the first infringement notice of its type under the Financial Markets Conduct Act. The fee payable for this infringement offence is $7,500.

PEC is a New Zealand registered building society that operates offshore. It was previously known as General Equity Building Society and General Equity. PEC provides financial services outside of New Zealand. As such, the only oversight the FMA has in relation to PEC is its financial reporting obligations.

In September 2014, the FMA issued a public warning about PEC advising the public to exercise “extreme caution before obtaining any financial services, or acquiring any financial products” from PEC. This warning is required to be displayed on PEC’s website. This warning from the FMA remains in force.

PEC was also removed from the New Zealand Financial Services Providers Register in February 2016 at the direction of the FMA.

The Ministry of Business, Innovation and Employment (MBIE) is looking into the role of building societies that operate entirely offshore with little or no oversight by a New Zealand regulator. These societies pose a risk to New Zealand’s reputation as a well-regulated jurisdiction.

MBIE has a targeted consultation underway on proposed changes to the Building Societies Act 1965 to address this problem.

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