Financial Scams on the Decline in New Zealand, FMA Finds

<p>The number
of potential financial scams and activities of unlicensed businesses in New
Zealand has significantly decreased since mid-2022, according to the latest
report published by the Financial Markets Authority (FMA). However, there has
been an increase in websites impersonating registered entities that offer
trading and financial services to retail customers.</p><p>FMA Publishes 2023 Annual
Report</p><p>The <a href="https://www.financemagnates.com/tag/fma/" target="_blank" rel="follow">FMA's</a>
report covers a range of significant issues, including major regulatory
actions undertaken by the watchdog. A notable case <a href="https://www.financemagnates.com/forex/fma-stops-firm-promising-350-returns-on-fx-and-crypto-in-60-weeks/" target="_blank" rel="follow">involved Validus</a>, promoting
its investment services at offline events. These promotions were found to be
dishonest and misleading. In early May, the FMA issued a permanent stop order
against Validus and its associates.</p><p>Regarding
the prevention and warning against potentially suspicious or unregistered
businesses, the FMA remains one of the most active regulators globally. In
2023, the number of warnings and alerts significantly decreased. There were 47
calls related to suspected scams, down from 105 published in the previous year.
The FMA issued only 17 warnings against unlicensed businesses, compared to 48
in 2022.</p><p>However,
the FMA has added a new category, “imposter websites”, to its report,
reflecting a substantial increase in the number of companies and dishonest
actors impersonating licensed firms. Despite issuing 29 warnings in this
category, the total number of alerts in 2023 was 89, a significant decrease
<a href="https://www.financemagnates.com/forex/new-zealands-fma-reports-17-spike-in-investment-scams-in-2022/" target="_blank" rel="follow">from 111 in 2022</a>.</p><p>Given the
continued activity and effectiveness of the regulator in identifying scams,
this trend can be interpreted as an indication of growing safety in the local
market.</p><p>“In
partnership with industry, government, and other stakeholders, we are creating
a rock-solid foundation for a genuinely fair financial system, where markets
are trusted based on their integrity and transparency, enabling responsible
innovation and growth,” Samantha Barrass, the Chief Executive of FMA, commented.</p><p>FMA Supports Market
Integrity</p><p>Accompanying
its annual report, the FMA published its “Ease of doing business” survey.
This study is based on feedback from key stakeholders and industry
participants, aiming to gauge the effectiveness of their interactions with the
FMA and their perceptions of the FMA's overall success in fulfilling its
responsibilities.</p><p>92% of
respondents acknowledged the FMA's role in supporting market integrity. An
impressive 95% agree that financial markets are effectively regulated under the
FMA's oversight. Additionally, 89% of the surveyed individuals believe that the
FMA plays a significant role in elevating the standards of market conduct.</p><p>One of the
latest cases included in the report is a fine of $900,000 that <a href="https://www.financemagnates.com/forex/new-zealands-fma-orders-tiger-brokers-to-pay-900k-for-amlcft-breaches/" target="_blank" rel="follow">Tiger Brokers
(NZ) Limited</a> had to pay for violating anti-<a href="https://www.financemagnates.com/terms/m/money-laundering/">money laundering</a> laws.</p>

This article was written by Damian Chmiel at www.financemagnates.com.