New Zealand’s financial conduct regulator says it has reached a “full and final settlement” with CBL Corporation after taking action related to its initial public offering.

Financial Markets Authority head of enforcement Margot Gatland says the parties will now proceed to a High Court pecuniary penalty hearing.

The regulator says the latest settlement marks another key step in long-running proceedings arising from the insurer’s collapse.

Last Monday, it said a settlement had been agreed with CBL director Peter Harris, with the amount of any penalty and whether a banning order should be made still in dispute and to be decided by the court.

The FMA took civil proceedings against CBL after the company’s listing on the New Zealand exchange in October 2015 and collapse in February 2018, when it was valued at $NZ750 million. 

“We did this because misleading or providing inadequate information to investors is unacceptable,” Ms Gatland said. 

“New Zealanders need to know that we will hold issuers to account to protect investors and ensure New Zealand’s financial system works for everyone.”