New Zealand’s FMA Blacklists 5 Scam Companies

New Zealands regulatory authority overseeing the market has expanded its watchlist, including five fresh additions. These entities purportedly offer investment services catering to retail traders, asset management, and term deposits, with some flagged as replicas of legitimate establishments.

In a recent update, the Financial Markets Authority (FMA) of New Zealand has enhanced its alerts list with five new entries. Ocean Trade, Cato Asset Management, Bronte FX, Co-operative Bank, and (fake) Bank of China have made it onto this watchlist.

Ocean Trade, functioning across twelve different websites, is utilizing the registered data of Mercado Limited (registration number 7353856), an entity distinct from Ocean Trade according to confirmation by Mercados director to the FMA.

The FMA listed the websites associated with Ocean Trade, cautioning the public against engaging with them due to potential risks:

• [ocean-trade.org](https://ocean-trade.org/);

• [perfectglobaltrade.org](https://perfectglobaltrade.org/);

• [livetradeinvestment.com](https://livetradeinvestment.com/);

• [cryptoprofitrade.com](https://cryptoprofitrade.com/);

• [coinminetinvest.com](https://coinminetinvest.com/);

• [cryptoprofitrade.com](https://cryptoprofitrade.com/);

• [cnkglobalinvestment.com](https://cnkglobalinvestment.com/);

• [stakefunds.org](https://stakefunds.org/);

• [episodegrab.org](https://episodegrab.org/);

• [upliftfxinvest.net](https://upliftfxinvest.net/);

• [coinfinancefxtrading.com](https://coinfinancefxtrading.com/);

• [realearners.net](https://realearners.net/);

• [coinfinancefxtrading.com](https://coinfinancefxtrading.com/).

Cato Asset Management, appearing to provide asset management services, and Bronte FX, facilitating CFD trading, have been labelled by the regulator as entities resembling legitimate websites. These entities not only use licensing data of other firms but also replicate website appearances, leading to consumer confusion. The FMA received reports of difficulties faced by clients in withdrawing funds associated with Bronte.

The recent warnings pertain to Co-operative Bank and (fake) Bank of China, promoting what the FMA described as “fake term deposits.” These fraudulent schemes often lure investors with excessively high interest rates or returns that are unrealistic.

In their commentary, the Financial Markets Authority (FMA) highlighted the sophistication of the deceptive Bank of China scheme, noting that fraudsters were distributing meticulously crafted product disclosure statements showcasing Bank of China's name, logo, address, and registration particulars with impeccable detail.

Although there has been a surge in websites mimicking registered entities in New Zealand, there has been a noticeable decline in potential financial scams and activities conducted by unlicensed businesses since mid-2022.

The FMAs 2023 report showcases this trend, evidencing a decrease in alerts compared to the previous year. Suspected scams numbered 47, a substantial drop from the 105 cases reported in 2022.

Yet, the FMA acknowledges a new trend in deceitful practices, introducing an “imposter websites” category in its report. This inclusion reflects the growing number of deceptive actors and companies imitating licensed firms. Despite issuing 29 warnings in this category, the overall alerts in 2023 totalled 89, down from 111 in 2022, indicating a general decline in such fraudulent activities.

The report also covers a recent case where Tiger Brokers (NZ) Limited faced a fine of $900,000 for breaching anti-money laundering laws, highlighting ongoing regulatory actions within the market.