The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, has yet again updated its warning list this Friday as scams within the industry continue to be a thorn in regulator’s sides.
Today the New Zealand watchdog has flagged King Capital Management, an entity which claims to be a full-service financial brokerage company based in Jakarta, Indonesia.
According to the warning from the FMA, it is: “concerned that King Capital Management may be operating a scam and accordingly advise caution before dealing with them.”
In its warning, the regulator doesn’t state whether the entity has the authorization to operate in New Zealand. One of the most common reasons that a regulator might suspect an entity of fraud is by operating without a license. Whether this is the case here is unclear.
FMA provides details on King Capital Management
The FMA provides the following details that belong to King Capital Management, and consumers should therefore avoid:
TRADING NAME: King Capital Management
ADDRESS: 23/F Pondok Indah Office Tower 3, J1. S. Iskandar Muda, Jakarta 12310, Indonesia
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PHONE: +6221 2975 9208
Via the entity’s website, it states: “The company was established in 2007. It was created by a team of highly experienced professionals who identified a need for bespoke financial services for expatriates, corporations and professional people throughout Asia, Middle East, Africa and Europe. We have a vast number of cumulative years experience in stocks, commodities, bonds and fixed income markets.”
On its website, the alleged Indonesian broker claims to offer a number of products including foreign exchange (forex), contracts for difference (CFDs), exchange-traded funds (ETFs), commodities, international equities and more.
FX and crypto scams are on the rise
Scams within the financial industry, particularly in the FX and crypto sector, are on the rise. As Finance Magnates reported, earlier this year, the Financial Conduct Authority (FCA) revealed that Brits lost approximately £27 million ($33.6 million) to FX and cryptocurrency-related scams in the 2018/2019 fiscal year.
According to the British regulator, authorities received 1,834 scam reports last year. That was almost a four-fold increase on the prior twelve-month period.