Auckland investment advisor permanently banned by FMA

The Financial Markets Authority (FMA) has issued a permanent ban against former journalist turned investment advisor David McEwen, and entities associated with him, over alleged dishonest and misleading activities.

It follows an interim stop order issued last month.

The FMA said its investigations uncovered McEwen and associates made inaccurate statements about the company’s holding of shares on behalf of investors.

The authority also said sale and purchase agreements relating to offers of financial products promised investors a return in the form of more ownership. However, it was unclear how this promise could be enforced because the company issuing the ownership was not directly involved in the agreement.

Furthermore, it alleged communications were sent out to current and potential investors that made unsubstantiated claims about the value of shares and assets held in the relevant companies.

“We believe the stop order is necessary to prevent any unlawful behaviour that may cause material financial harm to Mr McEwen’s clients,” said the FMA executive director of response and enforcement, Paul Gregory.

RNZ has approached McEwen for comment. He has previously not responded to requests for comment.

McEwen was the founder of investment advisory Stockfox and had been a regular commentator in the media over a number of years.

According to his LinkedIn profile, prior to his investment career, he had a career in business journalism at well-known publications, including the National Business Review, Reuters and the Financial Times.

The FMA said its investigation into McEwen and entities associated with him was ongoing and would not comment further.