Source: Radio New Zealand
The Financial Markets Authority’s headquarters in Auckland. Google Maps
The former head of failed insurer CBL has settled with the financial markets regulator over proceedings related to the company’s public share offer in 2015.
Under the settlement with the Financial Markets Authority, Peter Harris agreed to make admissions of liability relating to two breaches of the Financial Markets Conduct Act.
The settlement was announced one day before the public share float-related trial against CBL, and the executor of the estate of former director Alistair Hutchison, who died in 2021.
FMA head of enforcement Margot Gatland said the settlement was a significant milestone in the long-running proceedings that followed CBL’s collapse in 2018.
“The FMA has entered into a settlement with Mr Harris in respect of liability while allowing remaining issues relating to the appropriate penalty to be determined by the court,” Gatland said.
“While admissions have been made, the amount of any pecuniary penalty to be imposed and whether a banning order should be made against Mr Harris remain in dispute.”
Gatland said those issues would be determined by the High Court.
The penalty hearing against Harris was a separate matter to the trial starting Tuesday.
CBL was a share market high-flyer when it listed in 2015, rising to a value of around $750m before collapsing in 2018, triggering a string of investigations and legal cases by the FMA and Serious Fraud Office.
Last year, the former chief financial officer of CBL, Carden Mulholland, was ordered to pay more than $1.2 million in penalties and costs by the High Court, for being an accessory to the breaking of information disclosure rules.
In 2024, Harris and the FMA cut a deal to settle a civil case about market disclosures.
Under the deal, Harris was to admit breaches of rules for not disclosing to investors its insurance business needed to strengthen its reserves, unpaid premiums from its French business and official directions made to its Irish subsidiaries.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
