Risk-free investments should set off alarm bells.
The Financial Markets Authority (FMA) is warning people to beware of a company offering a risk-free, high-return investment programme.
The company trades as Eco Investments Group. It’s not registered or licensed to provide financial services in New Zealand.
The FMA warns anyone dealing with them to exercise extreme caution and it has received several complaints about the company.
Eco Investments Group regularly advertises in New Zealand newspapers offering what it says are guaranteed, high-returns for relatively little investment. The FMA has contacted the company to ask it to stop advertising in New Zealand. It’s also asked New Zealand newspaper publishers to turn down the company’s advertisements.
Elaine Campbell, FMA Director Compliance said: “Any company promoting so-called risk free investments should set alarm bells ringing for consumers - especially when they offer exceptionally high returns on investments and a money-back guarantee.
“If it sounds too good to be true, then it probably is, and we don’t want consumers to lose money unnecessarily when there are well-regulated products and services available from reputable providers in New Zealand.”