This is the first time the FMA has proactively cancelled a MIS manager licence. James Greig, FMA Director of Supervision, said the FMA considered FMO’s material contraventions and determined it was no longer capable of being a fund manager. “Cancelling a licence is one of the strongest regulatory actions we can take and it’s not a decision we take lightly,” he said. “It effectively stops a business from operating in the retail investment sector.” The FMA found FMO’s inadequate compliance and governance arrangements had resulted in continued material breaches of its licence obligations. These included: Disclosure: Incorrectly calculating and disclosing returns in fund