This is our last FMA Update for the year. There will be no FMA Update in January, with the next due to be sent out in late February, 2020.
Thank you to all our partners, stakeholders and friends who have helped us make 2019 a great year.
We hope you all have a safe and peaceful holiday season.
Civil proceedings against CBL
The FMA has issued two sets of civil proceedings in the Auckland High Court against CBL Corporation Limited (In liquidation) (CBLC), the six directors and the chief financial officer alleging multiple breaches of the Financial Markets Conduct Act 2013 (“FMC Act”).
The FMA is seeking declarations of contravention and civil pecuniary penalties in both proceedings.
We have published an information sheet outlining when issuers of securities described as “green bonds” can apply the “same class exclusion” to disclosure requirements.
A same class exclusion allows issuers to offer a new financial product, without full disclosure requirements, when that new product is of the same class as an existing quoted financial product.
The information sheet makes clear that the same class exclusion is available to an offer of green bonds if an issuer already has quoted green bonds with identical green features (rights, privileges, limitations and conditions), and all other relevant disclosure and compliance criteria have been met.
The information sheet also highlights that the FMA is open to considering individual exemption applications for a green bond offer from market participants who have quoted “vanilla” bonds.
Any such exemption would likely be subject to conditions requiring additional disclosure about what makes the bond “green”.
Financial Markets (Conduct of Institutions) Amendment Bill
A bill for the new regime to regulate financial conduct which would expand the remit of the FMA was introduced to Parliament last week.
Industry will be able to make submissions on the bill during the Select Committee process which is expected to start early next year.
Financial advisers transitional licensing update
Still deciding whether to apply for your own transitional licence or operate under someone else’s? John Botica, Director of Market Engagement at the Financial Markets Authority, shares some pointers for financial advisers as they navigate the process.
A Dr. Ryan Praxton who purports to be a representative of Suisse Credit Capital Limited (SCCL) has used false documentation that features the FMA logo and its senior management’s names to solicit money from people. The false and fictitious documentation claims that a mandatory fee is payable to enable the FMA to obtain official documents and facilitate the approval of loan funds.
The FMA recommends exercising caution before dealing with Orion Holdings Capital Management (OHCM), OH Capital and their websites www.ohcmgmt.com , and https://ohcapital.com/ . The business address in Ontario which OHCM and OH Captial purports to be operating from is false. OHCM is not registered to perform business in Canada in any capacity.
