FMA cancels Stockfox's FAP licence
The Financial Markets Authority (FMA) of New Zealand has cancelled Stockfox Limited's Financial Advice Provider licence.
The Financial Markets Authority (FMA) of New Zealand has revoked the Financial Advice Provider (FAP) license of Stockfox Limited, effective from May 30, 2024.
The FMA believes that Stockfox no longer meets the primary requirements of a market service license as stipulated in the Financial Markets Conduct Act (FMC Act), for the following reasons:
- David McEwen, serving as the sole director and sole financial advisor of Stockfox, is not deemed suitable.
- Stockfox is unable to effectively provide financial services.
- Stockfox may be in breach of its obligations as a market service licensee.
In December 2023, the FMA issued a permanent prohibition order to Mr. McEwen and entities associated with him.
The reason for the issuance of the prohibition order was that the FMA believed that the information disseminated by McEwen and Associates contained false or misleading statements, significant errors, and/or did not comply with the provisions of the Financial Markets Authority Act, as these statements made unsubstantiated claims regarding the value of financial products provided by McEwen and Associates to investors. These financial products include convertible note agreements, stocks in limited partnership agreements, and options to purchase units.
The prohibition order prohibits McEwen and Associates from offering, issuing, or selling, or otherwise disposing of financial products of McEwen and Associates, or accepting donations, investments, or deposits related to these products.
Mr. McEwen informed the FMA that he is unable to conduct normal business activities and has not responded to requests for documents and information from entities under his control by the FMA. Mr. McEwen did not respond substantively to the FMA's suggestion to revoke the Stockfox license or the issuance of a permanent prohibition order.
The FMA believes that Stockfox may be in breach of its obligations as a market service licensee and has determined that significant changes have occurred in relation to the license associated with Stockfox.
Mr. McEwen, as the sole director and controlling owner of Stockfox, informed the FMA that he has left New Zealand and has no plans to return.
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