New Zealand's FMA Orders FX Firm Cambrian to Revise Misleading Materials
- FMA order requires Forex educator Cambrian to change website and materials.
New Zealand’s Financial Markets Authority (FMA) has today issued an order requiring that foreign exchange educator Cambrian Corporation Limited (Cambrian) revise certain of its marketing materials – including its website -which the agency said contained misleading or deceptive content, according to an FMA announcement.
Cambrian breached two provisions of the Financial Markets Conduct (FMC) Act, according to the FMA, in connection with its training and advices services relating to intra-day foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) trading, as per the Direction Order (Order) dated May 20, 2016.
The regulator cited that the statements Cambrian had made about its services in the materials were unsubstantiated or lacked basis to support the claims made and thus were considered misleading thus prompting the FMA order.
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Clients must be informed
The order requires that Cambrian provide a copy of the order to all of its past and present clients, and after making the required changes to its materials, and the company will need to certify its compliance with the FMC Act to the FMA.
Commenting regarding the order, FMA’s Liam Mason, Director of Regulation said, “From the clients we interviewed and trades we analysed, the FMA did not find any evidence that Cambrian’s strategy resulted in the claimed returns.
Mr. Mason added: “Clients who signed up to Cambrian’s services will also have the opportunity to consider whether they did so on the basis of misleading information and seek recovery of any losses on that basis.”
FMA agreed to give Cambrian five days to informe all its clients and make the required revisions. The order noted regarding the use of testimonials, and certain required disclaimers and the need to emphasize inherent trading risks to counter-balance headline claims. Finance Magnates reporters reached out to Cambrian via email around
Cambrian's MD comments
Finance Magnates reporters reached out to Cambrian via email around time of publication for comments, and received the following statement shortly afterwards from Cambrian’s Managing Director Jade Lynn:
“Naturally I am disappointed by the decision and although I do not agree with all of their findings, in particular, their analysis of Cambrian's trades and trading journal as well as the disregard of analyzing further months of trading as supplied to the FMA, I am happy to comply and meet the requirements and view of the FMA in how Cambrian presents its marketing materials to the public.
The analysis of Cambrians trades were performed by the FMA with Bloomberg - a different data source to the data source used by Cambrian and its clients - and one must take into consideration that each Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term has subtle variances due to the brokers spread and the data pricing. For this reason, the platforms used by Cambrian and its clients lead to materially different results to the FMA’s findings and screenshots of actual trading charts were presented to reveal this factually incorrect data. I was informed that this was not enough evidence to suggest their analysis is flawed.
Nonetheless, I am happy to comply and alter Cambrian’s marketing materials to fall inline with the FMA’s view of the forex markets. I have expressed complete willingness and have complied with all aspects of the investigation process thus far and will continue to ensure Cambrian's materials meet the regulations and requirements of the FMA.”
New Zealand’s Financial Markets Authority (FMA) has today issued an order requiring that foreign exchange educator Cambrian Corporation Limited (Cambrian) revise certain of its marketing materials – including its website -which the agency said contained misleading or deceptive content, according to an FMA announcement.
Cambrian breached two provisions of the Financial Markets Conduct (FMC) Act, according to the FMA, in connection with its training and advices services relating to intra-day foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) trading, as per the Direction Order (Order) dated May 20, 2016.
The regulator cited that the statements Cambrian had made about its services in the materials were unsubstantiated or lacked basis to support the claims made and thus were considered misleading thus prompting the FMA order.
The new world of online trading, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
Clients must be informed
The order requires that Cambrian provide a copy of the order to all of its past and present clients, and after making the required changes to its materials, and the company will need to certify its compliance with the FMC Act to the FMA.
Commenting regarding the order, FMA’s Liam Mason, Director of Regulation said, “From the clients we interviewed and trades we analysed, the FMA did not find any evidence that Cambrian’s strategy resulted in the claimed returns.
Mr. Mason added: “Clients who signed up to Cambrian’s services will also have the opportunity to consider whether they did so on the basis of misleading information and seek recovery of any losses on that basis.”
FMA agreed to give Cambrian five days to informe all its clients and make the required revisions. The order noted regarding the use of testimonials, and certain required disclaimers and the need to emphasize inherent trading risks to counter-balance headline claims. Finance Magnates reporters reached out to Cambrian via email around
Cambrian's MD comments
Finance Magnates reporters reached out to Cambrian via email around time of publication for comments, and received the following statement shortly afterwards from Cambrian’s Managing Director Jade Lynn:
“Naturally I am disappointed by the decision and although I do not agree with all of their findings, in particular, their analysis of Cambrian's trades and trading journal as well as the disregard of analyzing further months of trading as supplied to the FMA, I am happy to comply and meet the requirements and view of the FMA in how Cambrian presents its marketing materials to the public.
The analysis of Cambrians trades were performed by the FMA with Bloomberg - a different data source to the data source used by Cambrian and its clients - and one must take into consideration that each Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term has subtle variances due to the brokers spread and the data pricing. For this reason, the platforms used by Cambrian and its clients lead to materially different results to the FMA’s findings and screenshots of actual trading charts were presented to reveal this factually incorrect data. I was informed that this was not enough evidence to suggest their analysis is flawed.
Nonetheless, I am happy to comply and alter Cambrian’s marketing materials to fall inline with the FMA’s view of the forex markets. I have expressed complete willingness and have complied with all aspects of the investigation process thus far and will continue to ensure Cambrian's materials meet the regulations and requirements of the FMA.”