FMA issues interim stop order on David McEwen

The FMA has issued an interim stop order against financial adviser David McEwen and entities associated with him. Photo / NZME

New Zealand’s financial watchdog has issued an interim stop order against financial adviser David McEwen and entities associated with him due to a risk of investor harm.

The order prevents McEwen from making offers of financial products and from accepting any further or new deposits or investments in respect of those financial products, the Financial Markets Authority (FMA) said.

The FMA said the interim stop order was in the public interest due to the real risk of investor harm arising from activities of McEwen and associates that appear to be dishonest and misleading and not to comply with the FMC Act.

A stop order is a regulatory tool the FMA can use to prevent advertising or disclosure that is false or misleading, or is likely to confuse consumers or investors, on matters that influence their investment decision.

The FMA is considering issuing a permanent stop order against McEwen and entities associated with him. The interim order remains in force until December 21.

McEwen describes himself on LinkedIn as having over 30 years’ experience watching the markets and now specialises in “timely commentary on shares that I classify through nine key assessment criteria”.

McEwen was the business editor of the National Business Review between 1992 and 1996 and is director of McEwen & Associates, which publishes the fortnightly McEwen Investment Report.

The entities associated with McEwen are Stockfox Limited, Cosmopolitan Holdings Limited, Strategy Services Limited, Fund Administration Services Limited, Digitech 1 Limited, M and A Holdings 1 Limited, M and A Holdings 2 Limited, Agtech 1 Limited, Agtech 2 Limited, Agtech 3 Limited, Startight Holdings Limited, Innovative Capital Limited, and McEwen’s Limited Partnership.

The FMA is contacting investors to make sure they are aware of the order.