Former CBL director Peter Harris and Financial Markets Authority reach settlement on IPO proceedings

Former CBL director Peter Harris, pictured in the High Court dock in 2020. Photo / Brett Phibbs

The Financial Markets Authority and former CBL director Peter Harris have agreed to settle initial public offering proceedings.

Under the settlement, Harris agreed to make admissions of liability in relation to two contraventions of the Financial Markets Conduct Act 2013 (FMCA).

Financial Markets Authoirty (FMA) head of enforcement Margot Gatland said the settlement is a significant milestone in the long‑running proceedings arising from the collapse of CBL in 2018.

“The FMA has entered into a settlement with Harris in respect of liability while allowing remaining issues relating to the appropriate penalty to be determined by the court.

“While admissions have been made, the amount of any pecuniary penalty to be imposed and whether a banning order should be made against Harris remain in dispute. These issues will be determined by the High Court at a disputed penalty hearing in due course.”

Last year, Harris was ordered by a High Court to pay a $1.4 million penalty for continuous disclosure and misleading conduct breaches relating to CBL.

As part of an in-court settlement, Harris made admissions to seven contraventions of the FMCA and agreed to an enforceable undertaking that he will not hold any management or directorship positions with any listed issuer or licensed insurer in New Zealand and will not participate in any regulated offer in New Zealand.

The initial public offering (IPO) proceedings continue against CBL, which is in liquidation, and the executor of the estate of former director Alistair Hutchison.