Investors in New Zealand, beware! The Financial Markets Authority (FMA) is raising red flags about a company called Equity Budget, which promises “unrealistic returns” of up to 7% per day. Be aware of this Potential Investment Scam.
Unregistered Activity Raises Concerns for Potential Investment Scam
The FMA’s warning highlights key points of concern. First, Equity Budget isn’t registered on the National Financial Service Providers Register, a mandatory requirement for any company offering financial products in New Zealand. This lack of registration raises serious questions about the company’s legitimacy and accountability. Furthermore, the FMA found no evidence of Equity Budget being registered in any other jurisdiction, making it difficult to verify their operations and track potential recourse for investors.
Unveiling the Get-Rich-Quick Scheme
Equity Budget’s investment plans offer guaranteed daily returns that defy logic. While they claim to invest in areas like agriculture and real estate, the promise of a consistent 7% daily return falls far outside the realm of realistic investment gains. The FMA warns that Equity Budget’s structure strongly resembles a “get-rich-quick” scheme, luring investors with unrealistic promises of high returns for minimal effort.
The FMA: Protecting Investors Through Vigilance
The FMA plays a crucial role in safeguarding New Zealand investors. Their recent actions against Equitise Pty Ltd, a previously licensed crowdfunding platform that breached market regulations, demonstrate their commitment to combating financial fraud. They also actively warn investors about potential scams, including cryptocurrency exchange scams and fraudulent product disclosure statements. In 2023 alone, the FMA issued over 80 warnings regarding suspected investment scams and impostor websites.
The FMA encourages anyone considering investing with an equity budget to exercise extreme caution and conduct thorough research. Remember, if an investment opportunity sounds too good to be true, it probably is. If you suspect a Potential investment scam, report it directly to the FMA. By staying vigilant and informed, investors can protect themselves from falling victim to these deceptive schemes.
