A former Auckland investment advisor who was being investigated by the financial markets regulator has departed from New Zealand.
David McEwen, who had been banned from his advisory role last December, notified the Financial Markets Authority (FMA) that he had left the country and had no intentions of returning. Although his current location remains unknown, it was believed that he had connections to Australia and Japan.
The FMA disclosed that it had revoked the license of Stockfox Limited, the investment advisory company led by McEwen, as it deemed him “unsuitable” to hold such responsibility. The FMA also expressed concerns about Stockfox’s inability to effectively deliver financial services and the likelihood of breaching its obligations as a licensee.
McEwen reportedly conveyed to the FMA his incapacity to conduct regular business operations and failed to comply with requests for necessary documents and information. Moreover, he did not respond adequately to the FMA’s proposals regarding Stockfox’s license cancellation and a permanent stop order issuance.
Peter Taylor, the FMA’s director of specialist supervision and response, criticized McEwen for falling short of the expected standards and obligations for a licensed financial advisor, citing a potential negative impact on his clients and a breach of their trust, which could undermine public confidence in the financial advice sector.
The FMA granted McEwen a 20-working-day notice prior to the license cancellation’s enforcement, stating that ongoing investigations prevented further comments on the matter.
Accusations of dishonest and misleading practices were raised against McEwen, who had a background in business journalism before transitioning into the investment field. His LinkedIn profile showcased his previous roles in reputable media outlets like the Financial Times, National Business Review, and Reuters. He later ventured into establishing Stockfox, his own advisory firm, and served as a director at McEwen & Associates.
In response to McEwen’s banning order issued in December, the FMA criticized him for allegedly providing inaccurate information about shareholding on behalf of investors. The authority highlighted discrepancies in the sale and purchase agreements related to certain financial products that pledged returns through increased ownership, a commitment with unclear enforceability due to the absence of direct involvement from the company issuing ownership. Allegedly, communications distributed to investors contained unsubstantiated claims regarding the value of shares and assets within the concerned entities.
The financial products involved in the disputes included convertible note agreements, shares, and options for acquiring units in limited partnership agreements. Consequently, the banning order prohibited McEwen from engaging in various investment services.
Priyam Gera