After issuing previous warnings, New Zealand’s Financial Markets Authority (FMA) today cautioned investors against being offered products and services from TradeVtech. According to a recent regulatory statement, the scam is operated by UMedia LLC a/k/a UM Media LLC, a company that claims to be registered in St. Vincent and the Grenadines.
The financial watchdog today updated its warning list by blacklisting the firm that offers trading in stocks, currencies, cryptocurrency, commodities, and indices. The broker is currently operating through the website www.tradevtech.net.
According to the warning, the Kiwi regulator is concerned about misleading statements made by TradeVtech through its websites as the company has been endorsing multiple products and services from unauthorized groups.
In particular, people have been warned to be wary of TradeVtech after the regulator found it uses fake celebrity investment endorsements. Their website attempts to lure people into making bogus investments with fake advice from celebrities.
The CFDs broker made false representations regarding its affiliates’ registration on the Financial Service Providers Register and claims it had full discretion over the trading and management of trade strategies that were offered. TradeVtech also told investors that it belongs to a dispute resolution scheme.
“We believe the entity is operating a scam. We have received a report about this entity advertising on Facebook using false celebrity endorsements. Their website claims to be a Contract-for-Differences (CFDs*) provider trading in stocks, currencies, cryptocurrency, commodities, and indices. However, they are not registered and/or licensed to provide financial services/products in New Zealand,” the regulator said.
This is not the first time that TradeVtech has sparked regulatory concerns. Most recently, Britain’s financial watchdog red-flagged the offshore broker. Moreover, TradeVtech was also blacklisted by Austria and Malta regulators.
The regulators mentioned reports regarding the company’s withholding of traders’ funds, for which it offers either questionable explanations or none at all.
The FMA is focused on identifying and blacklisting any individual or entity that is operating in New Zealand without a license or authorization, where that is required by law. However, the FMA warns that some companies are overseas operations, and the watchdog may only be alerted to them once a local investor has a problem with them.
The FMA updates the public using warnings and alerts when it believes investors may be at risk. Businesses and individuals are named on this list if they are not registered to provide financial services in New Zealand or have had the FMA enforce action against them for misconduct.