Financial Markets Authority v Patterson [2018] NZDC 13765

Published 24 May 2019

Sentencing — Financial Markets Authority prosecution — FSPR register — insurance — mortgages — Financial Markets Authority Act 2011, s 61 — Financial Service Providers (Registration and Dispute Resolution) Act 2008, s 12. The defendant appeared for sentence having pleaded guilty on the first day of his trial to one breach of s 61 of the Financial Markets Authority Act 2011 and one breach under s 12 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008. The charges related to the defendant's work as an insurance broker for several clients. The defendant had previous convictions that prevented him from holding FSPR accreditation and therefore operating as a principal, but the defendant worked in effect as the principal to those clients. The Judge noted that this was the first prosecution under the Financial Service Providers (Registration and Dispute Resolution) Act and that there are no tariff decisions for guidance. Upon assessing the defendant's culpability and the need to denounce and deter this kind of offending, the Judge determined a sentence encompassing both community detention and community work would be appropriate. The Judge acknowledged the defendant pleaded guilty (albeit on the first day of trial), and sentenced the defendant to 200 hours community work and three months community detention. Judgment Date: 4 July 2018.