New Zealand's Financial Markets Authority Revokes Stockfox's Financial Advice License

The Financial Markets Authority (FMA) of New Zealand has announced the cancellation of the Financial Advice Provider (FAP) license of Stockfox Limited (Stockfox) with effect from May 30, 2024, because the firm did not meet the requirements for holding a license under the relevant legislation.

Specifically, the FMA found that Stockfox did not have the capacity to provide financial services effectively, that it may be in breach of the licensee's obligations and that David McEwen, the firm's sole director and financial adviser, was not a fit and proper person.

Previously, McEwen's claims about its products were deemed by the regulator to be false and misleading, containing numerous misrepresentations and not in compliance with the relevant legislation. As a result, the FMA issued a permanent stop order against McEwen and its related entities in 2023, prohibiting them from offering, selling or accepting deposits and investments in relation to these financial products.

The FMA said, it has been informed by McEwen that he is unable to carry out his business activities properly, but he has not responded substantively to the notice of cancellation and the permanent stop order.

According to Peter Taylor, Director of Specialist Supervision and Response: "Mr McEwen has failed to meet the standards and obligations expected of a licensed Financial Advice Provider. His conduct has potentially caused harm to his clients and breached their trust. Such conduct erodes the public’s confidence in the financial advice industry."

McEwen has purportedly left New Zealand and had no plans to return. A related investigation conducted by the FMA is ongoing.