Former boss of failed insurer CBL goes for settlement with financial markets regulator

The former head of the failed insurer CBL, Peter Harris, has reached a settlement with the Financial Markets Authority (FMA) concerning proceedings linked to the company’s 2015 public share offer. Harris admitted to two breaches of the Financial Markets Conduct Act as part of the settlement, announced just before the trial against CBL and the estate of former director Alistair Hutchison was set to begin. While liability has been established, the FMA stated that the amount of any financial penalty and the possibility of a banning order against Harris will be determined by the High Court.

CBL experienced rapid growth after listing on the share market in 2015, reaching a value of approximately $750 million before its collapse in 2018, which prompted investigations by both the FMA and the Serious Fraud Office. This settlement follows a previous penalty imposed on CBL’s former chief financial officer, Carden Mulholland, who was ordered to pay over $1.2 million for aiding breaches of information disclosure rules.

In 2024, Harris and the FMA had already reached a separate agreement regarding a civil case concerning market disclosures, where Harris agreed to admit to failing to disclose critical information to investors about the company’s financial health, including reserve requirements and unpaid premiums from its international operations.

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