The Financial Markets Authority (FMA), New Zealand’s financial markets regulatory body, today issued an update to its warning list to include United Global Holdings Ltd, trading as FxUnited, making it the latest entry to be categorised under “Businesses to be wary of”.
FxUnited falsely claimed that the FMA endorsed the company as being legitimate and highly regulated.
This is a another example of guidance published by the New Zealand watchdog in recent months. In April 2016, Finance Magnates reported that the FMA had also warned against New Zealand-based Hangsiu Group Ltd for conducting “unregulated business”.
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FxUnited, an online broker which claims to be based in Wellington, New Zealand, operates via the websites www.fxunited.com and www.fxunitedpowerinternational.com, was flagged by the FMA after receiving reports that FxUnited had been falsely claiming that the FMA had endorsed the company as being legitimate and highly regulated.
The FMA had drawn attention to the fact that it does not confirm legitimacy or endorse any entity in this manner and has recommended that consumers exercise caution when dealing with any business claiming to be endorsed by the New Zealand watchdog.
The list of “Businesses to be wary of” serves to offer investors protection from businesses that are, or have been, registered on the Financial Service Providers Register (FSPR) but are the subject of complaints about loss of investor funds, or other serious misconduct that implies customers may lose money.
As FxUnited has not yet provided a satisfactory response to a request by the FMA for information about the complaints received, it has made it onto its warning list.