16/05/2019 FMA You're subscribed as [email address

Transcript:16/05/2019 FMA You're subscribed as [email address:
16/05/2019 FMA You're subscribed as [email address suppressed] View online | Preference Centre FMA UPDATE ABOUT US COMPLIANCE INVESTORS NEWS & RESOURCES CONTACT US Focus on enforcement Following the publication of the Hayne report in Australia, there has been plenty of discussions here and abroad regarding the appropriate tools available to enforce regulatory obligations. The past month has seen some significant results for our litigation and enforcement agenda, which serve to demonstrate the breadth and scope of our activities, and the types of tools that we utilise. We were pleased to achieve a positive resolution to an insider trading case, where we accepted admissions and an enforceable undertaking from Mr Mark Talbot. The range of sanctions applied, including a criminal conviction, payment in lieu of penalty, a 5-year management ban and public admissions ensured we achieved our regulatory objectives. We also received a favourable outcome in the Supreme Court, following a judicial review of our powers brought by ANZ. This matter saw us before the High Court, the Court of AppeaI and the Supreme Court. The past month also saw Mr Rene Moorby, a director of a company which falsely represented it was registered on the Financial Service Providers Register, convicted and sentenced to community service for breaches of his obligations; a decision from the Financial Advisers Disciplinary Committee following a referral by the FMA; and civil proceedings filed in relation to alleged market manipulation. In addition, Messrs Bublitz, McKay and Blackwood were sentenced, following their criminal convictions, for their respective roles in misleading investors and misappropriating funds in relation to Mutual Finance. As a risk-based regulator, we need to respond to conduct that harms investors and the integrity of the markets. We have recently reviewed our enforcement approach to ensure we remain focused on the right areas and are using the appropriate regulatory response to compliance issues and misconduct. We will continue to use the full range of tools available to us to achieve our regulatory objectives. While we will remain proportionate and flexible in the use of our powers, a more robust enforcement response is likely where firms have failed to meet their obligations, given the growing maturity of the regulatory regime and the clear expectations that we have set. Court-based sanctions may not always be our first choice, but neither are we shy of using litigation to provide credible deterrence for poor conduct. Nick Kynoch Nick Kynoch,