Civil proceeding brought by Du Val investors against Financial Markets Authority alleging negligence and breach of statutory duty – application by FMA for strike out on basis no common law and/or implied statutory duties of care exist – does a common law duty of care exist? – does an implied statutory duty of care arise from s 22 of the Financial Markets Authority Act 2011 and the broader statutory context?

Lindeman Investment Ltd v Financial Markets Authority [2025] NZHC 1909 per Blanchard J

Lindeman Investment Ltd, a shareholder in Du Val Property Group Ltd, sued the FMA in negligence and breach of statutory duty, asserting that the FMA breached its common law and/or implied statutory duties of care in carrying out its regulatory functions under the Financial Markets Authority Act 2011 and the Financial Markets Conduct Act 2013 in relation to the Du Val group of companies.

Lindeman had invested a total of $2 million in Du Val’s mortgage fund in 2022. Investors in this fund were entitled to receive a fixed return of 10% per annum, paid quarterly.