FMA advances legal actions linked to CBL Corporation Limited

The Financial Markets Authority (FMA) has announced progress in its legal case connected to the late Alistair Hutchison, a former director of CBL Corporation Limited (CBLC).

The High Court recently dismissed an application to strike out the FMA’s claim against the executor of Hutchison’s estate. 

The case centres on alleged failures to disclose related-party interests in a transaction known as the Samoa Transaction, which was detailed in CBLC’s Product Disclosure Statement (PDS) when the company listed in 2015.

The FMA has also accused the company of including false or misleading statements in the PDS, particularly about CBL Insurance Limited’s solvency and the stated objectives of the initial public offering (IPO).

FMA amends legal case

Following Hutchison’s death in 2021, the FMA amended its case to focus solely on obtaining declarations of contravention, rather than pursuing financial penalties.

The regulator maintains that continuing the case serves the public interest, given Hutchison’s alleged central role in the Samoa Transaction.

FMA proceeds with claim

The High Court ruled that proceeding with the claim would not constitute an abuse of process and affirmed that a fair trial remains feasible.

The case is scheduled for trial in April 2026.

Ex-CBL managing director penalised for market misconduct   

The court’s dismissal of the application follows its decision to order Peter Harris, the former managing director of CBLC, to pay a $1.4 million fine, stemming from breaches of New Zealand’s financial market laws.

The FMA initiated legal action under the Financial Markets Conduct Act 2013, alleging that CBLC failed to meet disclosure obligations and misled investors during 2017 and 2018.

The breaches reportedly involved: 

• insufficient reserves at CBL Insurance Limited
• significant unpaid insurance premiums linked to a French subsidiary
• regulatory orders issued to CBL Insurance Europe dac by the Central Bank of Ireland 

Additionally, the FMA alleged that CBLC misrepresented its financial position in an August 2017 market announcement. 

Harris reached a settlement with the regulator earlier this year, admitting to seven violations of the act. The jointly agreed penalty was approved by the court.

As part of the settlement, Harris is prohibited from serving in managerial or directorial roles with listed companies or licensed insurers until other court proceedings related to CBLC’s 2015 IPO are resolved.

CBLC, once valued at $747 million, was delisted in 2018, entered voluntary administration, and was placed into liquidation the following year.