The FMA has made an interim stop order that applies to Wisdom House Investment Partners and Yuen Pok (Paul) Loo. The regulator says the order is necessary to prevent harm “…arising from what appears to be dishonest and misleading activities.”
The FMA cancelled the transitional FAP licence of Wisdom House in December 2021 after Loo engaged in serious misconduct at his previous employer.
A spokesperson for the FMA says its investigations will continue while it considers whether a permanent stop order is warranted.
The FMA says Wisdom House and Loo are prohibited from:
- Distributing any restricted communication that relates to the supply of a financial advice service to any person; and
- Supplying a financial advice service to any person; and
- Supplying the financial service of keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons
“It appears that Mr Loo held himself out as a financial adviser to clients or potential clients of Wisdom House in an email when he is not permitted to do so,” states the FMA.
Attached to the email was a letter purporting to be from the FMA confirming it has granted Wisdom House a FAP licence. An FMA spokesperson says the email and the letter are false or misleading.
The interim stop order remains in force until the close of 5 September 2022.
See our report: Transitional FAP Licence cancelled