Financial adviser slapped with FMA's interim stop order

Order issued due to perceived risk of harm

By Mina Martin

11 Nov 2023

The Financial Markets Authority has issued an interim stop order against David Elgar McEwen and entities associated with him, as part of the FMA’s commitment to protecting investors from potential harm.

The interim stop order prevents McEwen and associated entities from making any offers of financial products and accepting new deposits or investments related to those financial products, either directly or indirectly. It also prohibits McEwen, affiliated entities, and their employees from communicating any information about the offers.

FMA has utilised the regulatory tool to stop or prevent potentially false or misleading advertising and disclosure that could confuse consumers or investors and influence their investment decisions.

The FMA has initiated the interim order as it investigates the possibility of issuing a permanent stop order against McEwen and the affiliated entities.

“The FMA is concerned that Mr McEwen and entities associated with him may have been making offers of financial products that are false or misleading, or likely to mislead or confuse; and contains a material misdescription or material error; and do not comply with the Financial Markets Conduct Act 2013 (FMC Act) or the regulations made under the FMC Act,” the regulator said in a media release.

FMA said it is in the public interest to issue the interim stop order due to the perceived risk of investor harm resulting from activities that seem dishonest, misleading, and non-compliant with the FMC Act.

Entities associated with McEwen affected by the interim stop order include Stockfox, Cosmopolitan Holdings, Strategy Services, Fund Administration Services, Digitech 1, M and A Holdings 1, M and A Holdings 2, Agtech 1, Agtech 2, Agtech 3, Startight Holdings, Innovative Capital, and McEwen’s Limited Partnership.

FMA’s interim stop order remains in effect until December 21.

FMA said it is actively reaching out to investors to ensure they are informed about the order and its implications.

Download the Interim Stop Order Against David McEwen and Associates.