Mortgage broker fined for late annual report

Photo / Dean Purcell

A second contributory mortgage broker has been convicted and fined for failing to deliver its annual report on time.

First Mortgage Investments pleaded guilty to the charge laid by the Financial Markets Authority and was fined $4000 in the Auckland District Court on March 20.

The maximum fine was $5000.

Contributory mortgage schemes pool money from many investors and lend it to property owners or developers.

Under the Securities Act they must file annual reports within three months of the end of their financial year.

First Mortgage Investments was supposed to file its annual report with the Registrar of Companies by June 30, 2013.

Belinda Moffat, head of enforcement at the FMA, said the conviction was a reminder to anyone taking investments from the public of the importance of fully and accurately disclosing financial information.

" It also reminds people of the consequences of failing to comply."

Earlier this month Prudential Mortgage was convicted of a similar offense and fined $2000.