Background
Jesse Joseph Vaughan, the sole director and shareholder of formerly registered company Crypto Partners Limited (CPL), offered investments in a managed investment scheme (MIS) operated by CPL. He did so without holding a MIS manager licence, and without providing the required disclosure, which are both contraventions of the Financial Markets Conduct Act 2013.
Mr Vaughan also told his investors in a newsletter that he had applied for a MIS manager’s licence, and that it was being reviewed by the FMA.
The FMA issued a public warning about this managed investment scheme operated by Jesse Joseph Vaughan and former NZ company Crypto Partners Limited.
The warning stated neither Mr Vaughan nor CPL had ever applied to the FMA for any form of market services licence. One of the main purposes of the market services licensing regime is to require licensees to act with integrity, diligence and skill and in the best interests of investors using their services. The warning stated CPL and Mr Vaughan’s conduct had been contrary to these obligations and investors were likely to have experienced significant detriment as a result.