FMA: Beware cold-callers' dodgy overseas investments

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The Financial Markets Authority is sounding the alarm over cold-callers touting questionable foreign investment schemes to New Zealand consumers.

The market regulator said it was receiving an increasing number of complaints about suspect offers involving the transfer of money overseas to buy shares in companies or foreign exchange trading services.

The watchdog said fake website addresses for well-known firms had been provided.

The FMA's director of compliance, Elaine Campbell, said that if an offer sounded too good to be true, it probably was.

"Our advice is simple. Don't transfer funds overseas to firms, or people, making offers like this - hang up the phone," she said.

"If you don't understand an investment or product, don't put your money into it."

The FMA said it generally could not help people recover money once it had been transferred overseas.

Tell-tale signs
• Requests to quickly transfer money overseas.
• Claims that you must "act now or miss out".
• Discouraging or prohibiting clients from seeking independent advice.
• Offers involving foreign exchange trading systems.