Action against improper conduct
The Financial Markets Authority (FMA) has cancelled Stockfox’s financial advice provider (FAP) licence effective May 30.
FMA determined that Stockfox no longer meets key requirements for a market services licence under the Financial Markets Conduct Act (FMC Act).
Key failures identified by FMA
FMA cited several reasons for this decision:
- David McEwen, Stockfox’s sole director and financial adviser, is not considered a fit and proper person.
- Stockfox is deemed incapable of effectively performing financial services.
- Stockfox is likely to breach its market services licensee obligations.
FMA had issued a permanent stop order to McEwen and his associated entities in December 2023 for distributing false or misleading communications and making unsubstantiated claims about financial products.
“McEwen has failed to meet the standards and obligations expected of a licensed financial advice provider,” said Peter Taylor (pictured above), FMA director of specialist supervision and response. “His conduct has potentially caused harm to his clients and breached their trust. Such conduct erodes the public’s confidence in the financial advice industry.”
Taylor stressed the necessity of cancelling Stockfox’s licence to promote confident and informed participation in the financial markets, ensure fair and transparent markets, and protect investors.
Transition for Stockfox clients
McEwen had 20 working days' notice before the licence cancellation took effect to notify his clients and assist them in transferring their business to another FAP.
McEwen, who has left New Zealand with no plans to return, has not responded to FMA's requests for documents and information.
The FMA has an ongoing investigation into McEwen and his associated entities and is unable to comment further at this time.
Click here for the FMA media release.
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