Hamish Fletcher

Hamish Fletcher is a business reporter for the NZ Herald

Regulator not investigating Phoenix Forex

Customers paid up to $25,000 to access a foreign exchange trading system distributed by Phoenix Forex.
Customers paid up to $25,000 to access a foreign exchange trading system distributed by Phoenix Forex.

The Commerce Commission said this morning it will not investigate Phoenix Forex, the Auckland-based company which the Financial Markets Authority issued a warning on last month.

Phoenix Forex was the New Zealand distributor of the OakFX foreign exchange trading system, which customers paid up to $25,000 to access.

The OakFX system is no longer being sold in New Zealand after the FMA warned about both Phoenix Forex and the software package.

"The FMA believes that Phoenix Forex's claims about the level of returns made by its trading system are untrue, and that Phoenix Forex is misrepresenting the profitability of, and risks associated with, its trading system," the FMA said.

A commission spokesman said yesterday a complaint about Phoenix Forex had been received and was being assessed.

This morning the commission advised it would not be investigating the firm as the matter did not meet the regulator's criteria.

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