People who give financial advice must be registered under the law and Loo had breached a “stop order” by continuing to contact his clients and provide financial advice.
Loo pleaded guilty to one charge of forgery, one representative charge of using a forged document, one representative charge of providing financial services when he was not registered and two representative charges of failing to comply with the FMA’s orders under section 479(2) of the Financial Markets Conduct Act 2013.
The Companies Office shows Wisdom House Investment Partners was incorporated in December 2020.
Loo of Highland Park is its sole director and shareholder.
Later last year, the FMA said it had made a permanent stop order against Wisdom House Investment Partners.
Loo falsely held himself out as a financial adviser in an email to clients or potential clients.
The email also contained statements that directly or indirectly refer to the supply, or possible supply, of a financial advice service and are reasonably likely to induce persons to request the supply of a financial advice service, the FMA said previously.
The FMA considered the email to clients and forged letter were false or misleading, or likely to mislead or confuse and contain a material misdescription or material error.
The materials were a “restricted communication” relating to the supply, or possible supply, of financial services, namely a financial advice service.
The FMA told the public not to engage with, or accept offers of financial services from Wisdom House, and not to provide money to Loo or Wisdom House.
It said last year it wanted to hear from his clients or those of Wisdom House.
In 2021, the FMA cancelled Wisdom House’s transitional financier advice provider licence.
It said then that Loo had established the business after his contract was terminated by Wellington-based financial services firm FoxPlan Ltd, which was censured by the FMA in July 2021.
Loo’s misconduct at FoxPlan, the FMA said, included telling clients he was an authorised financial adviser when he was not.
He also was found to be invoicing people for advice using altered FoxPlan invoices, resulting in the firm’s clients paying him directly – resulting in $36,029.98 being misappropriated from FoxPlan between July 2018 and November 2020.
FoxPlan considered Loo had breached his agency agreement and the firm’s internal policies, which led to his contract being cancelled immediately.
On the latest charges to which he pleaded guilty, Loo is due to be sentenced at the Manukau District Court on December 20.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
