Former financial adviser sentenced for regulatory breaches

Former financial adviser sentenced for regulatory breaches | Insurance Business New Zealand

Insurance News

Former financial adviser sentenced for regulatory breaches

Industry watchdog highlights regulatory integrity

Insurance News

By
Roxanne Libatique

The sentence was handed down following a successful prosecution by the Financial Markets Authority (FMA), highlighting a significant breach of trust within the financial services sector.

Financial adviser pleads guilty

According to the FMA, Loo admitted guilt to multiple offences in September 2023, including:

one count of forgery and one representative charge each of using a forged document;
providing financial services without registration; and
two charges of failing to comply with FMA orders.

Background

These charges stem from Loo’s actions of forging a letter that falsely claimed his company, Wisdom House Investment Partners Limited (Wisdom House), had been granted a full financial advice provider license by the FMA. Furthermore, Loo engaged in providing financial advice without the necessary registration and continued to do so despite FMA’s direct orders to cease.

The FMA had previously revoked the transitional financial advice provider license of Wisdom House in December 2021 and, in August 2022, issued a permanent stop order against both Loo and his company. This order was a preventive measure, barring them from offering financial advice services and managing investments on behalf of others.

Judge Jonathan Moses, in delivering the sentence, noted that were it not for Loo’s particular employment situation, a more stringent sentence of home detention would have been imposed.

FMA head of enforcement Margot Gatland emphasised the gravity of Loo’s actions.

“Mr Loo’s conduct was a serious breach of the ethical standards expected of financial advisers. His actions undermine the integrity and reputation of the financial advice profession and financial markets. [The] sentence sends a clear message that this behaviour will not be tolerated,” she said.