New Zealand’s Financial Markets Authority (FMA) today warned investors against being offered products and services from several unauthorised brands, according to a recent regulatory statement.
The financial watchdog updated its warning list by blacklisting Croftcapital, Capital Cycles and a clone of asset manager Blackrock Investment Management Australia. These companies are offering several financial services to both individuals and businesses, including trading in commodities, bonds and stocks, among other asset classes.
According to the warning, Croftcapital claims to be authorized to provide financial services in New Zealand, however this is not true. Additionally, New Zealand’s regulator is concerned that Stallion Capital could be a scam after it received a report saying that the broker continues to solicit client money from the country’s residents in spite of its inability to repay clients in accordance with their instructions.
Blackrock has no association with the clone scam
Meanwhile, Blackrock clone states in their prospectus that their clients’ money is insured up to $250,000 per investment by the New Zealand Government Guarantee Scheme. No such scheme exists in New Zealand, says the regulator, adding that Blackrock Investment Management Australia, the genuine firm, has also confirmed that they are not connected with the offer or the entity.
Based on this, the FMA warns the public not to invest with these brands, and to be cautious of dealing with their solicitations. None of them registered their business as a financial services provider in New Zealand and are therefore not allowed to offer financial services in the country.
The FMA is focused on identifying and blacklisting any individual or entity that is operating in New Zealand without a licence or authorisation, where that is required by law. However, the FMA has warned that some companies conduct their operations overseas and the watchdog may only be alerted to them once a local investor has a problem with them.
The FMA updates the public by means of 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, have had the FMA enforce action against them for misconduct, have either not responded or not provided a satisfactory response to a request for information, or have received a warning notice from the FMA.