Contributory mortgage broker pleads guilty
Prudential Mortgage Limited, a contributory mortgage broking firm, has been convicted and fined $2,000 for failing to
deliver its annual report to the Registrar of Companies by 30 June 2013. Prudential pleaded guilty to the charge laid by
the Financial Markets Authority (FMA).
The charge against Prudential was brought under the Securities Act (Contributory Mortgage) Regulations. The maximum fine
is $5,000. The conviction was entered in the Christchurch District Court on 5 March.
Reporting and disclosure by contributory mortgage brokers, including in annual reports, allows investors and potential
investors to understand the details of the broker’s financial position.
FMA Head of Enforcement, Belinda Moffat, said: “This case is a timely reminder to those taking investments from the
public of the importance of full and accurate disclosure of financial information to investors, and that there are
consequences of failing to comply with this fundamental obligation.”
“Ensuring accurate and timely disclosure to investors and promoting compliance with reporting obligations is a key
priority for FMA, and prosecution is one of the tools available to FMA to encourage compliance,” Ms Moffat said.
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