NZ regulator warns mortgage advisers after licence loss over documents
The Financial Markets Authority (FMA) has cancelled the Financial Advice Provider licence of Saanvi 2022 Limited, trading as Saaga Mortgages, after finding the firm failed to meet its licence obligations.
The decision comes as FMA is placing more emphasis on how New Zealanders access advice on major money decisions, including home loans. Its Access to Financial Advice Review found just 28% of New Zealanders had used a financial adviser in the past 12 months, with uptake lowest among lower‑income and less‑educated households.
FMA investigation triggered by aggregator concerns
The Auckland-based firm, whose sole director and only adviser was Gajay Singh, had been providing mortgage advice to retail clients. Concerns were first raised by its aggregator, Kiwi Adviser Network (KAN), after it detected issues in documents submitted to mortgage product providers.
FMA’s investigation found that altered supporting documents had been used in lending applications for six clients, and Saanvi could not supply originating emails or source records to substantiate those documents.
The regulator said the case highlighted fundamental failings in the way the firm handled loan files and its obligations under its FAP licence.
“The issues uncovered at Saanvi reflect serious failures of trust, governance, and professional standards,” Helena Lewis, head of the FMA’s perimeter and response team, said in a media release.
Lewis noted that mortgage advice involves particularly high stakes for consumers and demands robust systems around verification and record-keeping.
Undisclosed referral payments and third-party involvement
The watchdog also identified problems with Saanvi’s referral arrangements. Clients were not told about a referral deal that involved payments to a third party who was actively engaged in the advice process, rather than simply passing on leads. FMA found that Saanvi had misled KAN about the identity of this individual.
Saanvi further disclosed that clients’ personal information may have been accessible to an administrative assistant who had no formal employment or contractual relationship with the firm. That raised questions about how the business controlled access to sensitive data.
Lewis stressed the potential long-term impact of misconduct in this part of the market.
“Mortgage advice involves some of the most important financial decisions consumers will make, and poor conduct in this area can have long‑lasting consequences for households,” she said.
FMA ultimately determined that cancellation of Saanvi’s licence was necessary to protect consumers and market integrity.
“The cancellation of Saanvi’s licence is critical to ensuring we protect consumers and the integrity of the market,” Lewis said. “It is important for financial advice providers to act ethically to maintain trust and uphold the integrity of the sector, which Saanvi has failed to do.”
FMA noted that Saanvi cooperated throughout the investigation and that Singh expressed remorse for the conduct identified. Even so, the outcome signals that where altered documents, undisclosed arrangements, or weak governance are identified, loss of licence is a realistic consequence.
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