Companies offering financial services and products to Kiwis have to be either registered or licensed by the FMA.
This article in the NZ Herald says that over half of the 2,000 complaints received by the FMA since July 2014 have been against businesses operating outside of the law.
Here is their checklist to go by before you invest:
• The location of the provider – the FMA has more ability to help you if the business is in New Zealand
• The Companies Office website – does the business have a New Zealand director and does the company have the appropriate license for the financial product or service they provide?
• Be wary of Forex trading ‘training’ and ‘tools’ that promise a particular product or technique that gives access to better exchange rates or easy money. While software programmes and training courses can teach an investor how to make forex trades, no person or programme can ever accurately predict movement in foreign currencies. Property seminars also can make promises of no-fail wins on the property market.