FMA joins first World Investor Week to promote safe investing for Kiwis
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The Financial Markets Authority (FMA) is encouraging investors to become familiar and aware of the risks of investing with unlicensed offshore providers, and is reinforcing that selling financial products by cold calling is illegal.
The FMA is participating in the inaugural World Investor Week, from Monday 2 October – Sunday 8 October, run by the International Organization of Securities Commissions (IOSCO), to promote global investor education and protection.
As part of its protection message, the FMA is highlighting the case of “Diana”, who lost $7,000 after trading in unregulated binary options. Her case reflects many of the issues raised with the FMA by investors in this area, such as: click-through internet advertisements about “making easy money from home,” aggressive sales tactics, companies refusing to return money, cold calling and get-rich-quick schemes.
FMA Director of Investor Capability Paul Gregory said some basic protections for investors are “baked” into the FMA licensing process.
“Investors should expect to be communicated to clearly about the benefits and risks of a product. They can complain to a dispute resolution service if they have any issues with a financial service provider. Licensing also means we are able to hold providers to account for the way they treat their customers,” Gregory said.
The FMA said it regularly receives complaints from consumers who have been caught out by “slick websites and promises of high returns from offshore (companies)”. These complaints centre on products such as binary options and foreign exchange trading. The FMA warned it’s hard for it to help New Zealanders get their money back when they’ve invested in unlicensed, unregulated offshore companies.
To prevent Kiwis from losing their investments, the FMA urged investors to do their homework before committing money by checking the FMA’s lists of individuals and businesses to be wary of, and checking the FMA’s website for lists of providers, markets and individuals that are licensed and authorised to operate in New Zealand.
The FMA is a member of the IOSCO, and has licensed more than 200 financial services firms in New Zealand since 2013.
World Investor Week (WIW) is a global campaign to raise awareness about the importance of investor education and protection, and to highlight the various initiatives of securities regulations. WIW said this campaign offered a unique opportunity for IOSCO members to work in collaboration with all investor education and protection stakeholders at local and international levels.
Related stories:
FMA releases annual report
Regulator seeks feedback on robo-advice exemption
The FMA is participating in the inaugural World Investor Week, from Monday 2 October – Sunday 8 October, run by the International Organization of Securities Commissions (IOSCO), to promote global investor education and protection.
As part of its protection message, the FMA is highlighting the case of “Diana”, who lost $7,000 after trading in unregulated binary options. Her case reflects many of the issues raised with the FMA by investors in this area, such as: click-through internet advertisements about “making easy money from home,” aggressive sales tactics, companies refusing to return money, cold calling and get-rich-quick schemes.
FMA Director of Investor Capability Paul Gregory said some basic protections for investors are “baked” into the FMA licensing process.
“Investors should expect to be communicated to clearly about the benefits and risks of a product. They can complain to a dispute resolution service if they have any issues with a financial service provider. Licensing also means we are able to hold providers to account for the way they treat their customers,” Gregory said.
The FMA said it regularly receives complaints from consumers who have been caught out by “slick websites and promises of high returns from offshore (companies)”. These complaints centre on products such as binary options and foreign exchange trading. The FMA warned it’s hard for it to help New Zealanders get their money back when they’ve invested in unlicensed, unregulated offshore companies.
To prevent Kiwis from losing their investments, the FMA urged investors to do their homework before committing money by checking the FMA’s lists of individuals and businesses to be wary of, and checking the FMA’s website for lists of providers, markets and individuals that are licensed and authorised to operate in New Zealand.
The FMA is a member of the IOSCO, and has licensed more than 200 financial services firms in New Zealand since 2013.
World Investor Week (WIW) is a global campaign to raise awareness about the importance of investor education and protection, and to highlight the various initiatives of securities regulations. WIW said this campaign offered a unique opportunity for IOSCO members to work in collaboration with all investor education and protection stakeholders at local and international levels.
Related stories:
FMA releases annual report
Regulator seeks feedback on robo-advice exemption
