LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
The New Zealand Financial Markets Authority (FMA) has issued a warning with relation to Eco Investments Group, an unlicensed firm which provides FX trading, as well as investments in various other products including precious metals.
In this case, the (FMA) is warning potential investors to beware of the company due to its promises of a risk-free, high-return investment program.
A look at Eco Investment Group’s website shows claims regarding its VIP membership: “All investors who fall into this category stand to make up to 15x the investment capital within a Period of 14 days. Backed with great prospects and no risk involved, Eco Investment Group disbursed VIP investment funds into various investment sectors worldwide for efficient fund management and also assured insurance making it even more profitable.”
A tall claim indeed.
This practice has been a focus of New Zealand’s financial markets regulator since it was established two years ago, the FMA having been actively involved in putting a stop to the OakFX trading system which was offered by Phoenix Forex back in August 2013.
That particular company advertised returns of between 50%-65% per annum via its FX software which it sold for a very high price to mainly senior citizens, but was unable to provide any evidence to support its claims of having achieved these returns. Subsequently it emerged that Phoenix Forex was operating a boiler room in which pressure selling was used, before the firm collapsed in the autumn of 2013 leaving customers to sustain losses.
In this most recent, and indeed similar, warning, the FMA warns that anyone dealing with Eco Investment Group should exercise extreme caution before obtaining any financial services, or acquiring any financial products.
The FMA says that Eco Investments Group is regularly advertising in New Zealand newspapers offering what it says are guaranteed, high-returns for relatively little investment. The FMA has received several complaints about the company.
Eco Investments Group is neither registered nor licensed to provide financial services in New Zealand.
The FMA has contacted the company requesting them to stop advertising in New Zealand and has made contact with New Zealand newspaper publishers urging them to decline the company’s advertisements.
Elaine Campbell, FMA Director Compliance said: “Any company promoting so-called risk free investments should set alarm bells ringing for consumers – especially when they offer exceptionally high returns on investments and a money-back guarantee.
“If it sounds too good to be true, then it probably is, and we don’t want consumers to lose money unnecessarily when there are well-regulated products and services available from reputable providers in New Zealand.”
For the official announcement from the New Zealand FMA, click here.