David McEwen, a former financial adviser who operated in Auckland, has pleaded guilty to charges of violating a stop order issued by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko. The court has set his sentencing for Jan. 14.
The stop order, which was imposed in December 2023, restricts McEwen and entities linked to him from offering, issuing, or selling financial products. It also prohibits the distribution of communications related to those products and the acceptance of new investments or deposits. The FMA determined that communications from McEwen and his associates about financial product offers were either misleading, likely to confuse, or contained significant errors, and did not comply with the Financial Markets Conduct Act 2013.
FMA head of enforcement Margot Gatland encouraged anyone approached by McEwen or his related entities regarding financial product offers to notify the FMA. “Ultimately, confident participation in the financial markets can only exist if an intrinsic level of market integrity exists, which stop order provisions serve to facilitate,” Gatland said.
The FMA filed criminal charges against McEwen in December 2024, alleging that he continued to promote and accept investments for financial products in breach of the stop order. The stop order defined “McEwen and Associates’ financial products” broadly, covering any financial products offered by McEwen or his associated companies. McEwen has reportedly been living overseas since November 2023. He was served with the charges, entered a plea of not guilty, and did not appear in court at the time.
In September the regulator cautioned clients and subscribers to the “McEwen Investment Report” to review their bank statements for unauthorised transactions. This advice followed complaints suggesting that payments may have been processed without client approval.
Louise Unger, FMA executive director for response and enforcement, said: “If a charge has been made to cards without your authority, we advise you contact your credit card company or bank immediately and ask about the possibility of reversing the charge, how to withdraw any expired authorities, and whether it is necessary to cancel any existing cards. In general, this serves as a good reminder to anyone with a money card that they should always check their bank and card statements for unauthorised payments.”
McEwen’s operations included a network of companies, such as Stockfox Limited, Cosmopolitan Holdings Limited, Strategy Services Limited, Fund Administration Services Limited, Digitech 1 Limited, M and A Holdings 1 Limited, M and A Holdings 2 Limited, Agtech 1 Limited, Agtech 2 Limited, Agtech 3 Limited, Startight Holdings Limited, Innovative Capital Limited, and McEwen’s Limited Partnership. Some of these entities have since been deregistered. Through these businesses, McEwen provided subscription-based services, including investment newsletters and share-tipping advice. Some clients reported maintaining subscriptions for up to a decade.
This case highlights the ongoing responsibilities of insurance and financial professionals to comply with regulatory requirements and maintain transparent practices. The FMA’s actions reinforce the importance of upholding market integrity and protecting investors from misleading or unauthorised financial product offers.
