This replaces an interim stop order issued in November
The Financial Markets Authority (FMA) has issued a permanent stop order against David Elgar McEwen and entities linked to him, including McEwen and Associates.
The permanent stop order prohibits the following actions by McEwen and Associates:
- making offers, issues, sales, or other disposals of financial products
- distributing any restricted communication related to an offer of financial products
- accepting further contributions, investments, or deposits in respect of their financial products
FMA determined that communications made by McEwen and Associates regarding offers of financial products were:
- false or misleading, or likely to mislead or confuse
- contained material misdescriptions or errors
- did not comply with the Financial Markets Conduct Act 2013, especially regarding unsubstantiated claims about the value of their financial products
Examples of restricted communications discovered during investigations by FMA include inaccurate statements in shareholder agreements about the company’s holding of shares on behalf of investors, confusing representations in sale and purchase agreements regarding returns on investment, and unsubstantiated representations as to the value of shares and/or assets held in the relevant companies.
The permanent stop order replaces the interim stop order issued in November and will remain effective until FMA varies, suspends, or revokes it.
In a media release, Paul Gregory (pictured above), FMA executive director of response and enforcement, said the stop order was “necessary to prevent any unlawful behaviour that may cause material financial harm” to McEwen's clients.
Entities associated with McEwen include Stockfox, Cosmopolitan Holdings, Strategy Services, Fund Administration Services, Digitech 1, M and A Holdings 1, M and A Holdings 2, Agtech 1, Agtech 2, Agtech 3, Startight Holdings, Innovative Capital, and McEwen’s Limited Partnership.
FMA continues its investigation into McEwen and associated entities and has refrained from providing further comments at this time.
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