Advice crucial for 'fringe' investments
FMA head of primary regulatory operations Sue Brown said the regulator had noticed a recent increase in promotion of investments that don't fall under the Securities Act or the Securities Markets Act, the main pieces of investment law it is responsible for.
"Some products might just fall outside what we can do and can't do. Some examples include gold bullion and other commodities and also racing syndicates and gambling schemes that try to beat the market."
Brown said the products promoted weren't necessarily dodgy but the FMA was concerned investors would wrongly think they were regulated by it.
"The risk is they're getting promoted as investments but they are not the types of investments we regulate, so they're not under our control," she said.
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