Abuse of FSPR results in fine for Morgan DeVere in New Zealand

Maria Nikolova

This is the first time the Financial Markets Authority has prosecuted this type of abuse of the Financial Services Providers Register.

Morgan DeVere Corporate Finance Limited (Morgan DeVere) has been fined $40,000 over abuse of the Financial Services Providers Register (FSPR), the New Zealand Financial Markets Authority (FMA) has announced

The fine follows Morgan DeVere’s conviction at the Wellington District Court on two charges of breaching the Financial Services Providers (Registration and Dispute Resolution) Act 2008 (FSP Act) in May this year.

Morgan DeVere continued to claim it was registered on the FSPR although it had been deregistered and despite subsequent warnings from the FMA and the Registrar of the FSPR. Section 12 of the FSP Act says that no person, including a corporation, can claim that it is registered under the FSP Act unless it is registered on the FSPR and a member of an approved dispute resolution scheme.

The New Zealand-based director of the company, former Wellington real estate agent Rene Moorby pleaded guilty and was sentenced to 75 hours of community service in April 2019 for his part in the offending.

Karen Chang, Head of Enforcement at the FMA said: “This is the first time the FMA has prosecuted this type of abuse of the FSPR.”

“Our concern is that businesses and individuals have been using New Zealand’s reputation as a well-regulated country to target overseas investors – claiming they’re registered on our FSPR when they’re not, misleads consumers and implies a cloak of respectability they’re not entitled to.”

A second case related to abuse of the FSPR, involving Pegasus Markets Limited and director Michael Reps, is pending before the North Shore District Court.

The Financial Services Providers Register is managed by the Registrar of the FSPR, part of Companies Office. It is a compulsory public register of financial services providers. All businesses on the FSPR must have a New Zealand or Australia-based director.

Read this next

Retail FX

Investors from Cyprus and Dubai acquire ‘significant stake’ in M4Markets

Seychelles-regulated brokerage firm M4Markets firm has picked up some investment from Cyprus and Dubai based investors in a new funding round that it will be using to grow its business.

Executive Moves

UAE broker Amana elevates Amr Masry to sales director

Amr Masry has been promoted to a new senior role at Amana Capital, becoming the group’s newest Sales Director, following a successful tenure with the UAE-based FX and CFDs broker.

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

<