MED to look into overseas convictions loophole

"Under the Financial Service Providers Act individuals who are convicted of crimes overseas are able to register on the Financial Services Providers Register, without having to declare their convictions," said MED communications adviser Emilia Mazur.

"We are looking into the issue of taking relevant convictions from overseas jurisdictions into account and will provide advice to the Minister on this shortly."

Good Returns reported at the start of September that two Bay of Plenty advisers were accepted onto the Financial Services Providers Register despite court convictions in Australia for misleading investors.

Financial Markets Authority (FMA) chief executive Sean Hughes said the regulator was aware of the loophole but powerless to act as the Register is under the auspices of the Companies Office, part of the MED.