tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, May 17th, 6:37PM

News

rss
Latest Headlines

FMA: Advisers can help clients avoid scams

Advisers have a key role to play in helping clients avoid scams, the Financial Markets Authority says.

Friday, October 6th 2017, 5:59AM 2 Comments

by Susan Edmunds

The FMA is participating in World Investor Week, an initiative run by IOSCO to promote investor education and protection.

FMA director of investor capability Paul Gregory said the FMA wanted people to think before they took up investment options, particularly from off-shore providers.

“The more that is reinforced, the better, by us and advisers.”

He said clients valued the rapport they had with their investment advisers and had a good relationship built on trust. That meant advisers were well-positioned to tell their clients not to take up opportunities that sounded too good to be true.

“They can say ‘for God’s sake don’t do that, think about it, call me if you think responding to that advertisement is a good idea’.”

He said no one was immune to being picked on by scammers. Just because advisers’ clients might be more sophisticated investors, it did not mean they were safe.

Research by the Financial Conduct Authority in the UK found that older, wealthier, risk-taking men were the most likely targets for “share fraud” when worthless or unsellable company shares were on offer.

Women were more affected by “recovery fraud”, when scammers offered to recover funds or a lost investment in exchange for a fee. Other scams, such as Ponzi schemes, were more likely to sting younger investors.

The FMA has been focusing its efforts on highlighting the benefits to investors of using providers that are licensed in New Zealand.

Gregory said the number of complaints received about scams was steady at about 1000 a year. These complaints centred on products such as binary options and foreign exchange trading. Where an unlicensed, unregulated company based off-shore withheld money from an investor, it was hard for the FMA to help.

Tags: financial advisers FMA investment ponzi

« Getting to Know: Anand SrinivasanLVR restrictions to be reviewed »

Special Offers

Comments from our readers

On 6 October 2017 at 8:25 am Brent Sheather said:
I am very cynical of this sort of thing from the FMA. They are focussed on scams that impact .001% of the investor population yet are totally oblivious to the scams perpetrated on the other 99.99%. Where is the FMA in respect of closet indexing, high fees that materially impact investors retirement outcomes, the regular fake news emissions from the big players, non-disclosure of trading costs etc etc? Just smiling and looking smug doesn’t really do it for me or investors generally.
On 6 October 2017 at 2:29 pm R1 said:
Spot on Brent. Completely laughable when the FMA focuses such trivial issue and turns a blind eye or fails to act against the large scale rip-off of investors funds by the financial services; e.g. KiwiSaver funds grow by x% and the level of fees collected by the fund managers grows ahead of this; scandalous. What does the FMA do? Say its losing patience with fund managers not engaging with investors to switch out of default funds.

I think this image pretty much sums it all up:
https://previews.123rf.com/images/kanvag/kanvag1202/kanvag120200012/12584144-Justice-greek-themis-latin-justitia-blindfolded-with-scales-sword-and-money-on-one-scale-Corruption--Stock-Photo.jpg

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 ▼6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 ▼6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼6.79 - -
Co-operative Bank - Owner Occ 8.40 ▼6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 ▼7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - ▼6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 ▼7.74 7.29 6.59
SBS Bank Special - ▼7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 ▼6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 17 May 2024 9:41am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com