News
Financial Markets Authority opens civil case against Booster Investment Management
The FMA said there are 75 causes of action related to investments in wine businesses. Photo: 123rf.com
The Financial Markets Authority has opened civil proceedings against Booster Investment Management (BIML) relating to multiple breaches of the Financial Markets Conduct Act (FMCA) between 2017 and 2022.
The business was owned by fund manager Booster Financial Services and the FMA was also taking action against directors and senior managers, including directors Allan Yeo and Paul Foley, former director Brendon Doyle and senior managers David Beattie and Nicholas Craven.
The actions related to investments in wine businesses and focused on the governance provisions of the Act, including managers’ fiduciary duties and related party transactions.
The FMA said there were 75 causes of action, considered serious, and that civil proceedings were the proportionate response.
In a statement, BIML said it strongly disputed the FMA’s allegations and would vigorously defend its position.
He denied any wrongdoing and maintained his investment practices that provided good returns to clients.
“Booster looks forward to the future opportunity to demonstrate that it acts in the best interests of its customers,” he said.
“We support the good work we have done and will continue to innovate for the benefit of our investors.”
FMA oversight chief Margo Gatland said Booster was cooperating with the FMA oversight team.
“The allegations center on important governance provisions of the FMCA, including managers’ fiduciary duties and related party transactions,” Gatland said.
“The court’s determination will provide guidance to the market on the application of these basic investor protection provisions of the FMCA, which managers and directors are required to comply with when making investment decisions on behalf of others.”