Investment home truths, FMA

The FMA is raising the awareness about scams and smart investing

Investment home truths, FMA
With investment scams becoming more sophisticated and fraudsters becoming more persuasive, investors are advised to educate themselves about smart investing, the Financial Markets Authority (FMA) is encouraging.

Last week, the FMA announced it was participating in the inaugural World Investor Week, which ended yesterday, run by the International Organization of Securities Commissions (IOSCO) to promote investor education and protection.

The FMA said using a licensed provider would provide some protection and minimum standards of service.

“Licensed providers have to show us they are able to provide the licensed service, and we monitor them to ensure they are meeting their obligations.

“They’re held to high standards and have to belong to a dispute resolution scheme. The communicate clearly and simply, to help you to understand their products and services.” FMA said.

The regulator said providers communicate clearly and simply, to help investors understand their products and services.

The FMA highlighted that is only regulates financial services businesses in New Zealand, and that it’s often impossible for investors to recover money if an overseas investment turns out to be a scam.  

“If a business is not based in New Zealand, it’s even more important you do your research before you invest. Make sure you know who regulates them, and that the regulator is genuine.”

A list of licensed providers can be found on the FMA’s website.


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