After issuing previous warnings, New Zealand’s Financial Markets Authority (FMA) today cautioned investors against being offered products and services from Forex Hub Limited, according to a recent regulatory statement.
The financial watchdog today updated its warning list by blacklisting the firm which offers several financial services to both individuals and businesses. The company is currently operating through the websites www.managedforexhub.com and www.managedforexhub.co.nz.
According to the warning, the Kiwi regulator is concerned about misleading statements made by Managed Forex Hub Limited through its websites as the company has been endorsing multiple products and services from unauthorized groups.
Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>
The asset manager made false representations regarding its affiliates’ registration on the Financial Service Providers Register and claims it had full discretion over the trading and management of trade strategies that were offered. Managed Forex Hub also told investors that it belongs to a dispute resolution scheme.
The FMA mentioned reports regarding the company’s withholding of traders’ funds, for which it offers either questionable explanations or none at all. The broker is not authorized to offer financial services in New Zealand, and the regulator strongly advises traders to exercise caution when dealing with it.
The FMA is focused on identifying and blacklisting any individual or entity that is operating in New Zealand without a license or authorization, where that is required by law. However, the FMA has warned that some companies are overseas operations and the watchdog may only be alerted to them once a local investor has a problem with them.
The FMA updates the public using warnings and alerts when it believes investors may be at risk. Businesses and individuals are named on this list 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.