The FMA filed two civil proceedings against CBL Corporation Limited and its directors following an investigation into the company’s collapse in 2018. The first proceeding involved breaches of the continuous disclosure provisions of the Financial Markets Conduct Act 2013 (FMCA).
A related proceeding brought by the FMA alleges breaches by CBLC in regard to its Initial Public Offering in 2015. A six-week trial is set down for 13 April 2026 in the High Court in Auckland.
A timeline of activity is detailed below:
28 February 2025
The High Court has found former CBL Group Chief Financial Officer, Carden Mulholland, to have breached the continuous disclosure provisions of the Financial Markets Conduct Act 2013 (FMCA), following the public listing of CBL Corporation (CBLC) in October 2015 and its subsequent collapse in February 2018. The judgment follows a trial in the Auckland High Court before Justice Gault, which commenced in late June 2024 and concluded in early August 2024.
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – proceeded to trial against Mr Mulholland, having reached in-court settlements with CBLC, its Managing Director Peter Harris, and its former independent non-executive directors in 2023 and 2024, which saw them admit multiple contraventions and the Court make pecuniary penalty orders.
This is the first time New Zealand Courts have considered the liability of a chief financial officer (CFO) acting as an accessory to a company’s contravention under the FMCA.
The FMA’s case against Mr Mulholland centred on his role as CFO of the CBL Group (for which CBLC was the parent company) and as a member of CBLC’s Disclosure Committee. He was also a director of CBLC’s European subsidiary, CBL Insurance Europe dac (CBLIE).
22 August 2024
The High Court has ordered Peter Harris, the former CBL Corporation Limited (In Liquidation) (CBLC) managing director, to pay a penalty of $1.4 million for continuous disclosure and misleading conduct breaches following proceedings brought by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – under the Financial Markets Conduct Act 2013 (FMCA) (the Continuous Disclosure Proceeding).
25 March 2024
The FMA and Mr Harris have entered an in-court settlement to resolve the Continuous Disclosure Proceeding on terms acceptable to both parties. A penalty hearing before the High Court in Auckland will take place in due course.
22 December 2023
The High Court has ordered CBL Corporation Limited (CBLC) and four of its former directors to pay penalties for continuous disclosure and misleading conduct breaches following proceedings brought by the FMA under the Financial Markets Conduct Act 2013.
12 June 2023
FMA has reached agreement with CBL Corporation Limited (In Liquidation) (CBLC) and four of its former directors in respect of the FMA's claims of continuous disclosure breaches and misleading conduct.
December 2019
We issued two sets of civil proceedings in the Auckland High Court against CBL Corporation Limited (in liquidation), the six directors and the chief financial officer, alleging multiple breaches of the Financial Markets Conduct Act 2013.
12 November 2018
The FMA publishes an update about the ongoing investigation.
14 August 2018
Decision announced that continuous disclosure obligations do not apply during administration.
The judge stated in his decision on 13 August 2018 “that the disclosure/reporting obligations of an issuer in voluntary administration are contained within Part 15A of the Companies Act and while the issuer is in administration, the continuous disclosure obligations are suspended.”
6 August 2018
Hearing held at the Auckland High Court.
13 July 2018
The FMA announced its intention to file a case stated procedure on the issue of continuous disclosure obligations for listed issuers in voluntary administration.
17 May 2018
The FMA publishes an update about the ongoing investigation.
