New Zealand’s Financial Markets Authority (FMA) has updated its warning list to include two further financial services providers, TCA Financial and Exo Capital Markets Ltd.
The latest additions to the FMA’s growing list of unregistered businesses follow the inclusion of brokerage Titan Trade in September for unlawfully soliciting its services to New Zealand residents, as reported by Finance Magnates.
TCA Financial which operates online via the url: http://tcafinancial.com, purports to help its clients accumulate and preserve wealth by actively managing the deployment of their investment capital within the global financial markets.
According to the FCM, the firm appears to have the characteristics of a boiler room fraud and has highlighted the fact that the Securities & Futures Commission of Hong Kong (SFC) also added TCA to their alert list in August 2016, advising that it is not located at the Hong Kong address stated on its website.
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Exo Capital Markets
Exo Capital Markets, a retail forex broker operating as Trade12 via www.trade12.com and located at Ajetlake Road, Majur, Marshall Islands, has been flagged for cold calling New Zealand residents and offering trading accounts. The company is not registered on the FSPR and is therefore not allowed to offer financial services in New Zealand.
The FMA has also noted a warning against Trade12 by Italy’s regulator, Commissione Nazionale per le Societa la Borsa (CONSOB), with Russia’s watchdog KROUFR also issuing an alert about the company in October.
Both entities have been categorised by the FMA as “unregistered businesses” as businesses or individuals offering financial products or services in New Zealand must be registered on the Financial Service Providers Register(FSPR) in order to legally operate.
For this reason, the FMA has recommended that potential investors do not invest money through these companies.
Businesses and individuals highlighted and listed by the FMA 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.