FMA Warning: Equity Budget Investment Risks

The Financial Markets Authority (FMA) of New Zealand issues a warning about Equity Budget, alerting investors to potential risks. However, the FMA cautions that Equity Budget needs proper registration and regulation, signaling potential risks for investors.

Equity Budget, which claims to have operated for 11 years out of New Zealand, promises unrealistically high returns of up to 7% daily. Despite its claims, the company is not listed on the National Financial Service Providers Register, a mandatory requirement for offering financial products in New Zealand. Furthermore, it lacks registration in any other jurisdiction or falls under regulatory oversight from other countries.

Equity Budget’s investment schemes, which allegedly focus on agriculture, freight and logistics, and real estate projects, promise guaranteed daily returns based on the chosen “investment plan.” For instance, a $100 investment could purportedly yield a daily return of 4.1%, while a $100,000 investment could offer a 7% daily return, potentially accumulating $840,000 in 120 days.

FMA Warning: Equity Budget Investment Risks

The FMA warns investors that Equity Budget’s operations exhibit the hallmarks of a get-rich-quick scheme, promising substantial returns with minimal investment, effort, or risk. This warning comes amidst the FMA’s active efforts to combat financial fraud and protect investors. Recently, the regulatory authority revoked the license of Equitise Pty Ltd, a licensed equity crowdfunding service provider, citing significant breaches of market services licensee obligations. Additionally, the FMA cautioned investors about AxonExchange, a suspected cryptocurrency exchange scam.

The FMA’s concern is growing over scams involving impostors, particularly those employing fake product disclosure statements. In 2023, they issued 82 warnings about potential investment scams and fake websites, and 22 warnings about unregistered businesses. Additionally, the FMA has noticed a pattern where scammers pretend to be regulatory bodies from other nations, like the UK’s Financial Conduct Authority, to deceive New Zealanders.

So, in light of these developments, the FMA advises investors to exercise caution and conduct thorough due diligence before engaging with any investment opportunity, particularly those offering unrealistic returns or lacking proper regulatory oversight.

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