New Zealand’s FMA warns against Blackrock clone, Croftcapital and Capital Cycles

abdelaziz Fathi

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.

NZX publishes regulatory agenda

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.

Read this next

Retail FX

Eurotrader taps MahiMarkets’ cross-asset trading technology for pricing and risk management

Eurotrader has tapped MahiMarkets’ cross-asset trading technology to manage its pricing and risk management on its fully licensed and regulated retail brokerage operation covering forex, stocks, indices, and commodities. 

Technology

STT doubles user base as Sterling OMS adopted by TradeZero, Avenue, Banco C6

Sterling Trading Tech (STT) has announced record growth of its order management system (OMS) offering, doubling its user base throughout the second half of 2022.

Retail FX

CMC Invest announces flexible stocks and shares ISAs amid changes in UK policy

In addition to a flexible ISA, the Plus plan provides members with a USD currency wallet for their general investment account (GIA), alongside the default GBP wallet that comes with all CMC Invest accounts. This means users will hold both a GBP wallet and a USD wallet. Saving customers money on FX fees.

Executive Moves

The Trading Pit snatches Skilling Daniela Egli from Skilling to lead Cyprus operation

“We feel privileged to have Daniela join The Trading Pit and bring her extensive expertise to our prop trading firm. We are confident in The Trading Pit’s ambition to provide the ultimate global trading environment for talented traders to enhance their skills and eventually become professional fund managers.”

Industry News

Worldpay taps SheerID to allow merchants to better target their audiences

SheerID verifies over 2.5 billion people via 20,000 authoritative data sources; provides global insights from hundreds of the world’s leading brands, and never shares or sells customer data.

Crypto Insider

Cardano (ADA) Price For 2022-23: Buy Cardano With NAGAX

Cardano (ADA) is probably one of the most renowned and well-known cryptocurrencies out there at the moment and is currently available on the majority of the crypto exchanges and platforms in the market.

Retail FX

ACY Securities recognized by Salvation Army NSW for its support to charity work

““Sitting in the backyard of those family friends, to see the devastation the floods had brought, was a real eye-opener, and a testimony to the Salvos who were on the ground helping every one of those in need during the recent NSW floods.”

Executive Moves

BNP Paribas announces senior executives of Global Markets Americas division

French bank BNP Paribas has appointed several senior executives to its Global Markets Americas division, demonstrating its ambition to grow its Global Equities, Global Credit, and Global Macro franchises in the region. 

Technology

Match-Trade expands partnership with Takeprofit Tech

California-based FX technology provider Match-Trade Technologies has expanded its partnership with fintech software developer Takeprofit Tech.

<