Prime Minister John Key says a decision on whether Sir Douglas Graham should be stripped of his knighthood will not be made until the Lombard case has run its course.
The Court of Appeal has on Tuesday increased the sentences for the former directors of Lombard Finance, including Sir Douglas, from community work to include home detention.
Lombard Finance collapsed in 2008, owing 3600 investors more than $111 million. In 2012, former directors Sir Douglas, William Jeffries, Michael Reeves and Lawrence Bryant were found guilty of making false statements in a company prospectus.
Mr Key said on Tuesday he has received advice from the Cabinet Office on whether Sir Douglas' could have his knighthood taken away.
"What it really says is, it's my call. It'd be a very unusual thing to lose a knighthood - it has happened - but every situation's unique."
The Lombard case could go to the Supreme Court and Mr Key said a decision would not be made while the case is before the courts.