The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has today issued an Interim Stop Order (Order) to Validus International LLC (registered in Delaware, USA) pursuant to section 465 of the Financial Markets Conduct Act 2013 (the Act).
While this Order is in force, Validus and its associated persons are prohibited from:
- making offers, issues, sales or other acquisitions or disposals of financial products promoted under the brand or name Validus; and
- accepting applications for financial products promoted under the brand or name Validus; and
- distributing any restricted communication that relates to:
- the offer, or intended offer, of financial products promoted under the brand or name Validus; and/or
- the supply, or possible supply, of a financial advice service to any person; and
- accepting further contributions, investments, or deposits in respect of financial products promoted under the brand or name Validus; and
- supplying a financial advice service to any person; and
- supplying the financial service of keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons.
The FMA considers that making this Order is in the public interest because there is real risk of investor harm arising from activities of Validus and its associated persons, that appear to be dishonest and misleading and not to comply with the Act or the regulations made under the Act.
The FMA reinforces its warning that the public should exercise caution in dealing with this company and its associates. The FMA also encourages people to come forward with any complaints or information about this entity, especially if they have made contributions, investments or deposits to this company and its associates, at this contact. All information is treated in confidence.
The FMA is considering whether it may exercise a power (to issue a full stop order) under section 462 of the Act.
Following the interim stop order Validus will now be aware that communications at marketing events will be a restricted communication (as defined in section 464 of the Act) where they:
- directly or indirectly refer to an offer, or intended offer, of financial products (namely a managed investment product promoted under the brand or name Validus) or the supply, or possible supply, of a financial service (namely a financial advice service);
- are reasonably likely to induce persons to apply for financial products (namely a managed investment product promoted under the brand or name Validus) or request the supply of a financial service (namely a financial advice service);
- are authorised or instigated by, or on behalf of, offeror, the service provider or an associated person of the service provider (namely Validus); and
- are to be distributed to a person (being attendees at the marketing event).
Validus is required to provide a copy of this Order to all its associated persons.
The FMA is cooperating with the Commerce Commission on these matters.
Other terms and conditions
The FMA must give the Registrar of Financial Service Providers written notice of the terms and conditions of this Order, the reasons for this Order and any other information the FMA thinks relevant in the circumstances and make the notice available on the FMA’s Internet site in accordance with section 477(1)(b) of the Act. Under section 477(1)(c) of the Act, the FMA may also give notice to any other person of those matters.
This Order is made at 4.30pm today.
- See FMA consumer resources on scams
- See Commerce Commission website for information on pyramid schemes
ENDS
Media contact:
Andrew Park
FMA Media Relations Manager
andrew.park@fma.govt.nz
021 220 6770
Notes
For the purposes of this Order:
- associated and associated person have the meanings given to those terms in section 12(1) of the Act:
- distribute has the meaning given to that term in section 6(1) of the Act:
- financial advice service has the meaning given to that term in section 431D of the Act:
- financial product has the meaning given to that term in section 7 of the Act:
- financial service has the meaning given to that term in section 6(1) of the Act: and
- person has the meaning given to that term in section 6(1) of the Act:
- restricted communication has the meaning given to that term in section 464 of the Act.
