Latest news with #FinancialMarketsConductAct2013
Scoop
7 days ago
- Business
- Scoop
FMA Issues Infringement Notice To Pharmazen Limited
The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko – has issued an infringement notice to Pharmazen Limited for failing to file financial statements on time. Pharmazen has not yet filed audited financial statements for the year ended 31 December 2024 that were due by 30 April 2025, as required under section 461H of the Financial Markets Conduct Act 2013 (FMC Act). It was also late to file financial statements in 2024 and 2023. Pharmazen informed the FMA that the delay this year was due to ongoing negotiations with their bank about matters relevant to the entity's going concern assessment. Pharmazen has notified the FMA that it intends to publish its financial statements on 6 June 2025. FMA Director of Markets, Investors and Reporting John Horner says, 'Financial statements provide investors and other stakeholders with important information for decision-making purposes. For many FMC reporting entities, financial statements are the only source of financial information available. It's a fundamental obligation that reliable financial statements are made available to the public in a timely manner'. 'Entities should report within the required timeframes regardless of challenges impacting the going concern assessment. Informing investors in a timely way is essential to enable them to make informed decisions,' says Mr Horner. The FMA's infringement notice requires Pharmazen to pay a $7,500 fee for an infringement offence under s 461H of the FMC Act. It has 28 days to pay the infringement fee or respond to the notice.
Scoop
22-05-2025
- Business
- Scoop
FMA Issues A Warning On Managed Investment Scheme
Press Release – Financial Markets Authority FMA has issued a public warning about a managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited (CPL). The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has issued a public warning about a managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited (CPL). FMA Executive Director of Response and Enforcement Louise Unger said, 'We understand that Mr Vaughan, the sole director and shareholder of formerly registered company CPL, has offered investments in a managed investment scheme (MIS) operated by CPL. He did so without holding a MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.' Mr Vaughan also told his investors in a newsletter that he had applied for a MIS manager's licence, and that it was being reviewed by the FMA. 'I can confirm that neither Mr Vaughan nor CPL has ever applied to the FMA for any form of market services licence,' said Ms Unger. 'One of the main purposes of the market services licensing regime is to require licensees to act with integrity, diligence and skill and in the best interests of investors using their services. We consider that CPL and Mr Vaughan's conduct has been contrary to these obligations and investors are likely to have experienced significant detriment as a result. 'The FMA will continue to take actions when we see misconduct damaging the trust and confidence in New Zealand's financial markets and businesses. We do this to both prevent and deter others from doing this and, in this case, to hold Mr Vaughan to account,' concludes Ms Unger.
NZ Herald
22-05-2025
- Business
- NZ Herald
Financial Markets Authority warns against unlicensed investment scheme run by crypto company
'He did so without holding an MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.' Vaughan also incorrectly told his investors in a newsletter that he had applied for an MIS manager's licence and that it was under FMA review. 'I can confirm that neither Mr Vaughan nor CPL has ever applied to the FMA for any form of market services licence.' Unger promised that Vaughan would be held to account. 'One of the main purposes of the market services licensing regime is to require licensees to act with integrity, diligence and skill and in the best interests of investors using their services. 'We consider that CPL and Mr Vaughan's conduct has been contrary to these obligations and investors are likely to have experienced significant detriment as a result.' Investors in CPL who have not had their investments returned are encouraged to contact the FMA, as are people who have been invited by Vaughan to invest in his business. Jaime Lyth is a multimedia journalist for the New Zealand Herald, focusing on crime and breaking news. Lyth began working under the NZ Herald masthead in 2021 as a reporter for the Northern Advocate in Whangārei.
Scoop
21-05-2025
- Business
- Scoop
FMA Issues A Warning On Managed Investment Scheme
The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko – has issued a public warning about a managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited (CPL). FMA Executive Director of Response and Enforcement Louise Unger said, 'We understand that Mr Vaughan, the sole director and shareholder of formerly registered company CPL, has offered investments in a managed investment scheme (MIS) operated by CPL. He did so without holding a MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.' Mr Vaughan also told his investors in a newsletter that he had applied for a MIS manager's licence, and that it was being reviewed by the FMA. 'I can confirm that neither Mr Vaughan nor CPL has ever applied to the FMA for any form of market services licence,' said Ms Unger. 'One of the main purposes of the market services licensing regime is to require licensees to act with integrity, diligence and skill and in the best interests of investors using their services. We consider that CPL and Mr Vaughan's conduct has been contrary to these obligations and investors are likely to have experienced significant detriment as a result. 'The FMA will continue to take actions when we see misconduct damaging the trust and confidence in New Zealand's financial markets and businesses. We do this to both prevent and deter others from doing this and, in this case, to hold Mr Vaughan to account,' concludes Ms Unger.
Scoop
01-05-2025
- Business
- Scoop
Experienced Investor Found Liable For Market Manipulation
Press Release – Financial Markets Authority FMA Head of Enforcement, Margot Gatland said, Mr Chengs orders lacked a genuine commercial purpose and were instead made for the purposes of increasing the price and/or demand for RUA shares at a time when he held a material shareholding in the … Kok Ding Cheng, an experienced investor, has been ordered to pay the Crown a pecuniary penalty of $198,000, following a civil proceeding brought by the Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko for market manipulation. The FMA's case centred on five small orders for of NZX-listed shares of Rua Bioscience Limited (RUA) that Mr Cheng made over a 10-day period during late 2020 via a broking account he held with ASB Securities. The Court found in making each of those five orders, which ranged from $59 to $540, Mr Cheng breached s265 of the Financial Markets Conduct Act 2013 which prohibits trade-based market manipulation. The Court found that Mr Cheng deliberately placed the orders for the purpose of increasing the price and/or demand for Rua shares. Mr Cheng did not file a statement of defence during the proceeding, and so the proceeding progressed by way of formal proof hearing. FMA Head of Enforcement, Margot Gatland said, 'Mr Cheng's orders lacked a genuine commercial purpose and were instead made for the purposes of increasing the price and/or demand for RUA shares at a time when he held a material shareholding in the company. 'Market manipulation undermines confidence in financial markets because it means investors can't trust prices or market activity to be genuine. We take cases of market manipulation seriously to ensure New Zealand's markets reflect genuine supply and demand, in order to preserve their integrity and reputation. 'We considered Mr Cheng's conduct warranted a firm response to deter market manipulation. This case and the Judge's ruling are important reminders that trade-based market manipulation can occur when trading through online share brokerage accounts. Investors should be careful to understand their obligations when trading online, as trading listed shares for disingenuous reasons can result in liability.' The $198,000 is to be paid to the Crown after it is first applied to the FMA's actual costs in taking the case.
