The following has been received from the FMA. The original is here.
MR No. 2023 – 50
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has made an interim stop order against David Elgar McEwen and entities associated with him from making offers of financial products and from accepting any further or new deposits or investments in respect of those financial products. The interim stop order also prevents Mr McEwen, entities associated with him, and any persons employed by him, from making any communications about the offer of those financial products.
A stop order is a regulatory tool the FMA can use to stop or prevent advertising or disclosure that is false or misleading, or is likely to confuse consumers or investors, on matters that influence their investment decision.
The FMA has made this interim order because it is considering whether it may issue a permanent stop order against Mr McEwen and entities associated with him. The FMA is concerned that Mr McEwen and entities associated with him may have been making offers of financial products that:
- are false or misleading, or likely to mislead or confuse; and
- contains a material misdescription or material error; and
- do not comply with the Financial Markets Conduct Act 2013 (FMC Act) or the regulations made under the FMC Act.
The FMA considers that making this order is in the public interest because there is real risk of investor harm arising from activities of Mr McEwen and associates that appear to be dishonest and misleading and not to comply with the FMC Act.
The interim stop order prohibits Mr McEwen and entities associated with him from:
- accepting any applications for financial products offered directly or indirectly, by or for Mr McEwen and entities associated with him; and
- accepting any further or new contributions, investments, or deposits in respect of financial products that have been directly or indirectly offered by or for Mr McEwen and entities associated with him at any time.
The interim stop order also prohibits Mr McEwen, entities associated with him, and any persons employed by him, from making and/or distributing any restricted communication in respect of any direct, indirect or intended offer of financial products by or for Mr McEwen and entities associated with him to any person (whether they are a retail or wholesale investor).
The entities associated with Mr McEwen are Stockfox Limited, Cosmopolitan Holdings Limited, Strategy Services Limited, Fund Administration Services Limited, Digitech 1 Limited, M and A Holdings 1 Limited, M and A Holdings 2 Limited, Agtech 1 Limited, Agtech 2 Limited, Agtech 3 Limited, Startight Holdings Limited, Innovative Capital Limited, and McEwen’s Limited Partnership.
The FMA is contacting investors to make sure they are aware of the order.
The order remains in force until Thursday 21 December 2023.
Restricted communication is defined in section 464 of the FMC Act, and includes emails, newsletters, telephone calls, online or in person communication.