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23 June 2020

CLSA Premium New Zealand Limited (CLSAP NZ)

CLSA Premium New Zealand Limited (CLSAP NZ) was a licenced derivatives issuer and the local subsidiary of the Hong Kong parent, CLSA Premium Limited.

The firm was ordered to pay a total pecuniary penalty of $770,000 for breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, following proceedings brought by the FMA.

Separately, CLSAP NZ failed to meet audit and assurance obligations so the FMA imposed conditions on its derivatives issuer licence which prevented the firm from making an offer to, or receiving further funds from, retail investors in relation to derivatives (except in certain limited circumstances).

September 2021

CLSAP NZ ordered to pay a total pecuniary penalty of $770,000 for breaches of the AML/CFT Act, following proceedings brought by the FMA.

May 2021

CLSAP NZ admitted to breaches of the AML/CFT Act. A court hearing for a pecuniary penalty against CLSAP NZ is set down for 5 July 2021.

September 2020

FMA imposed conditions on the derivatives issuer licence of CLSAP that prevent the firm from making an offer to, or receiving further funds from, retail investors in relation to derivatives, except in certain limited circumstances.

The FMA found CLSAP NZ failed to meet some of its audit and assurance obligations for 2019 and it is not confident the firm will be able to meet those obligations in the near future.

June 2020

FMA filed civil High Court proceedings against CLSAP NZ for alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act. The FMA claimed CLSAP NZ failed on numerous occasions to conduct sufficient customer due diligence and enhanced customer due diligence, to terminate business relationships, to report suspicious transactions and to keep records in accordance with the AML/CFT Act.