Misleading practices lead to licence cancellation
The Financial Markets Authority (FMA) has revoked Integrity Advisers Insurance’s (Integrity) financial advice provider (FAP) licence due to serious misconduct.
The Christchurch-based firm, led by sole director and shareholder, Yuriy Bazhak, provided financial advice to approximately 500 retail customers, many of whom belong to the Filipino community.
Integrity’s unfair practices and client exploitation
The FMA investigation found that Integrity failed to meet its market services obligations, including giving priority to clients’ interests, complying with professional conduct standards, and treating customers fairly.
The breaches occurred when Integrity pressured clients into keeping their insurance policies or charged excessive fees when they tried to cancel.
In some instances, the firm went so far as to threaten clients with reports to Immigration New Zealand, falsely suggesting this could lead to visa cancellations or deportation.
FMA takes firm action against misleading practices
“Contrary to its name, this firm lacked any integrity with its clients,” FMA Director Peter Taylor (pictured above) said.
“Mr. Bazhak not only risked causing serious harm to his clients but preyed on their vulnerability through the threat of involving Immigration New Zealand.”
Taylor added that revoking the licence sends a strong message against such unethical practices.
Support for affected clients
Provisions have been made for Integrity’s clients, who will be contacted by their new financial advice provider or insurer.
Clients are encouraged to seek help from Financial Services Complaints (FSCL) if they believe they have been unfairly treated or wish to lodge a complaint.
Integrity’s clients can reach out to FSCL’s financial ombudsman service or consult with their new advisers to discuss their options and file complaints if necessary.
Prior to this news, FMA announced that Du Val Capital Partners and several entities within the Du Val Group were placed into interim receivership by the High Court at its request, and that it had filed criminal charges against a former financial adviser, who has pleaded not guilty to two representative charges of theft by a person in a special relationship.
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