The ex-managing director also admits to misleading and deceptive conduct
The Financial Markets Authority (FMA) has finalised an agreement with Peter Harris, the former managing director of CBL Corporation (in liquidation), who admitted to contraventions related to continuous disclosure breaches and misleading conduct by failing to disclose vital market information during 2017 and 2018.
CBLC: Key allegations and admissions
The allegations included CBLC’s failure to meet continuous disclosure obligations regarding its need to strengthen reserves, issues with aged receivables from a French insurance business, and directives from the Central Bank of Ireland affecting a subsidiary.
Additionally, Harris admitted to misleading and deceptive conduct related to a market announcement on Aug. 24, 2017.
FMA penalties and restrictions
As part of the settlement, Harris will not hold any management or directorship positions in any listed issuer or licensed insurer in New Zealand, nor will he participate in any regulated offer in the country until the final determination of related court proceedings, including any appeals.
“The FMA took these civil proceedings in the public interest to meet our regulatory objectives, including to hold significant misconduct to account by several directors and officers of CBLC,” said Margot Gatland (pictured above), FMA’s head of enforcement.
“We are satisfied this agreement to move to a penalty hearing, with in-court admissions of contraventions, and the management restrictions to which Mr Harris is now subject, meets our objectives at this time in relation to Mr Harris and the continuous disclosure proceeding.”
Ongoing proceedings and settlements
FMA continues its proceedings against former CBL CFO Carden Mulholland and others in relation to the company’s IPO in 2015. Separately, defendants settled civil proceedings with shareholders and liquidators for $72.5 million, part of which Harris personally contributed, without admitting liability.
More on CBLC and the FMA case
CBLC was listed on the NZX main board in 2015 but faced voluntary administration in February 2018, followed by liquidation in May 2019, amid financial scrutiny.
FMA, which recently saw to the sentencing of Natalie Carter for multiple offences related to forgery and financial markets legislation, has discontinued claims against former non-executive director Alistair Hutchison in the continuous disclosure proceeding following his death in December 2021, though the IPO proceeding claims against his estate continue.
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