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W & K


Spotting an Investment Scam

Every year a reasonable number of investors in New Zealand end up being victims of Investment Scams. Some of these scams may appear at first to be legitimate, but some careful research should be able to at least raise some suspicion.

Some of the hallmarks of a scam are as follows:

Free Trade Agreements

One of the major changes over time, particularly over the last few decades has been the freeing up of economies. The Treaty of Rome was the forerunner to the European Union. This created a large free market between the original members, with tariffs or quotas being imposed on goods produced outside the member states. Effectively the rules were set so the home teams had a significant advantage.

Financial Literacy – Explaining Some Financial Jargon

This week is Money Week which is a joint initiative by the Retirement Commission, the FMA and the IFA (Institute of Financial Advisers). One of the major objectives of Money Week is to increase financial literacy. To achieve this there is a need to understand some of the jargon used. Of course, you do not need to understand all the terms to be a successful investor. To become a successful investor we would recommend that you also seek investment advice from an experienced authorised financial adviser.

FMA has QFE’s Concerns

The Financial Markets Authority (FMA) has recently released its annual report on Qualifying Financial Entities (QFE’s) such as banks. The FMA has raised serious concerns about QFE’s and how they are not disclosing that they can only sell their own investments. The FMA wants them to advise their clients that there may be other more suitable investments for their investors, however they are unable to recommend them.

Scottish Voting Could Impact the Markets

There are three imminent events in different countries where the outcome may or may not cause political change. For New Zealanders there is our general election. For Fijians there is their general election, the first in eight years following a military coup. The Scots on Thursday, are voting on whether they should go it alone, rather than continue the union of the past three centuries or so. From a financial markets’ perspective, the Scottish situation is by far the more important.

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