The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has cancelled the financial advice provider licence of Les Vela Limited, which traded as Wise Insurance, following findings that its director, Le Zhou, submitted applications for non-existent clients in order to claim commissions.
Alongside the cancellation, the regulator instructed the Registrar of Financial Service Providers to remove Zhou from the register and prevent him from rejoining for five years.
The decision came after an insurer alerted the authority to suspicious applications.
An inquiry determined that 15 policies covering 27 fabricated customers had been processed, generating $260,937 in commissions for Zhou.
Louise Unger, the FMA’s executive director for response and enforcement, said misconduct of this kind is appearing more frequently during difficult economic conditions.
“Under current weaker economic conditions, we are seeing an increase in fraudulent activity by financial advisers, particularly in relation to insurances and mortgages. While these instances are the exception rather than the norm, the severity of the conduct makes this a priority for the FMA to address,” she said.
The regulator described the activity, known in the sector as “tombstoning,” as damaging to public confidence.
“Financial advisers play an important role in helping New Zealanders grow their retirement savings and investments, source insurance and mortgages, protect their income and assets, and support overall financial well-being,” Unger said. “It is important for financial advisers to act ethically to maintain trust and uphold the integrity of the sector, which Mr Zhou has failed to do.”
The case is also the subject of a police prosecution.
Zhou was arrested in July and faces three charges of forgery, with a court appearance scheduled for October.
Acting detective senior sergeant Ben Bergin of the Waitematā Financial Crime Team said police continue to investigate cases where individuals misuse access to financial systems for personal benefit.
“Police are continuing to see an increase in people using their employment or access to systems to commit offending. Abusing these systems for personal gain is a criminal offence, and Police are continuing to hold offenders to account,” he said.
The enforcement action comes as the FMA sets new performance standards for the year ahead.
Its 2025/26 Statement of Performance Expectations (SPE) outlines how the regulator intends to measure its work across supervision, licensing, enforcement and stakeholder engagement.
A central feature of the plan is how industry participants and consumers perceive the regulator’s effectiveness.
The FMA aims for 90% of firms to say its work is raising conduct standards and for 75% of consumers to report confidence in market oversight.
