New Zealand Financial Markets Authority cancels Hope Group Limited’s financial advice provider licence over duplicate insurance policies and misleading advice

The New Zealand Financial Markets Authority (FMA) has cancelled the financial advice provider licence of Christchurch-based Hope Group Limited (HGL) after an inquiry identified serious conduct issues and material breaches of obligations in relation to personal risk insurance advice provided to retail clients. The cancellation followed the termination of HGL’s distribution agreement with an insurer and a subsequent review by the FMA of 14 insurance policy applications submitted by HGL’s sole director and financial adviser, Junpu Wang, on behalf of 13 customers. The conduct included submitting second applications using incorrect or false customer information to conceal duplicate policies, completing a direct debit authority without the client’s authentic signature, keeping two policies active without client consent so clients paid two premiums, and recommending second policies based on promotional pricing or benefits despite clients being ineligible. The FMA also found instances where clients were not adequately helped to understand the advice, including being incorrectly told a new policy was needed to avoid future premium increases; the FMA stated the conduct was aimed at generating commission after the insurer’s 24-month clawback period. The FMA said HGL and Mr Wang received NZD 37,374 in upfront commissions and clients overpaid NZD 5,342.34 in premiums while duplicate policies remained active for up to 27 weeks. The insurer has contacted impacted clients and put support arrangements in place. HGL and Mr Wang have been deregistered from the Financial Service Providers Register, and the matter has been reported to the Police.