Financial Markets Authority files civil proceedings against Booster Investment Management

The Financial Markets Authority has filed civil proceedings against Booster Investment Management (BIML) related to multiple breaches of the Financial Markets Conduct Act (FMCA) between 2017 and 2022.

The business was owned by fund manager Booster Financial Services and the FMA was also taking action against senior directors and managers, including directors Allan Yeo and Paul Foley, former director Brendon Doyle, and senior managers David Beattie and Nicholas Craven.

The actions were related to investments in wine businesses and centred around governance provisions of the Act, including fiduciary duties of managers and related party transactions.

The FMA said there were 75 causes of action, which were considered to be serious, and that civil proceedings were the proportionate response.

In a statement, BIML said it strongly disputed the FMA’s allegations and would defend its position vigourously.

It denied any wrongdoing and stood by its investment practices which had delivered good returns for customers.

“Booster looks forward to the opportunity ahead to demonstrate that it acts in its customers’ best interests,” it said.

“We stand by the good work we have done and we will continue to innovate for the benefit of our investors.”

FMA head of enforcement Margo Gatland said Booster was cooperating with the FMA’s supervisory team.

“The allegations are centred around important governance provisions of the FMCA, including fiduciary duties of managers and related party transactions,” Gatland said.

“The court’s determination will provide guidance to the market about the application of these core FMCA investor protection provisions, that managers and directors are required to comply with when making investment decisions on behalf of others.”

According to the news on Radio New Zealand

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