Happy New Year and a welcome back to the office for those who have returned. While many of us were already at the beach, the Financial Markets Authority (FMA) was particularly active towards the end of December last year. We have pulled together brief summaries of these activities to help get you up to speed in the New Year. In our view this late rush of activity indicates that 2025 will also be a busy year for the FMA as it continues to take a very active role in the market.
We have set out below a brief summary of the five media releases published by the FMA between 18 – 23 December 2024:
- The FMA has a filed a case stated proceeding with the High Court (which is a process where the FMA asks the High Court for its opinion on a question of law without taking any action against a specific party) relating to the use of eligible investor certificates in the wholesale investment sector. The FMA is particularly interested in the express content requirements of these certificates and the requirements on offerors relying on these certificates.
- Westpac New Zealand (Westpac) has made admissions of misleading customers and overcharging customers in relation to certain benefits and discounts which should have been available. The FMA previously brought civil proceedings against Westpac and a penalty hearing will be heard in due course. The FMA has reported that Westpac has provided remediation to the impacted customers.
- An individual has plead guilty to criminal insider trading charges previously brought against them by the FMA. The proceeding brought by the FMA related to the individual providing material, non-market, information in an NZX listed company to a former colleague who subsequently traded in the shares of that company. Sentencing is scheduled to take place on 17 April 2025.
- The FMA has filed civil proceedings against InvestNow for alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The alleged breaches relate to InvestNow's compliance programme, failing to conduct enhanced due diligence and account monitoring, and failing to terminate business relationships when required. The FMA has previously issued a warning and investigated InvestNow's compliance with the Act.
- The FMA has censured Pathfinder Asset Management for alleged misleading statements about the nature of Pathfinder's KiwiSaver Funds' ethical investments. The alleged misleading statements related to two different advertisements on both social media and Pathfinder's website regarding animal testing and fossil fuels. The FMA was satisfied that Pathfinder's conduct was a material departure from the fair dealing requirements of the Financial Markets Conduct Act 2013 and did not reflect the FMA's guide on advertising offers of financial products.
If you have any questions on the above, or would like to discuss any aspect of New Zealand's financial services landscape, please contact our financial services regulation team.
