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Investment home truths

2 October 2017 

smart investor:

Uses a licensed provider – this provides some protection and minimum standards of service

  • Licensed providers have to show us they are able to provide the licensed service, and we monitor them to ensure they are meeting their obligations. 
  • They’re held to high standards and have to belong to a dispute resolution scheme. 
  • They communicate clearly and simply, to help you to understand their products and services.

Avoids investing via offshore, online businesses – if you do, we can’t help if things go wrong

  • We only regulate financial services businesses operating in New Zealand. 
  • It’s often impossible for you to recover your money if an overseas investment turns out to be a scam. 
  • If a business is not based in New Zealand it’s even more important you do your research before you invest. Make sure you know who regulates them, and that the regulator is genuine.

Ignores unsolicited offers – it’s okay to hang up, or ignore an email

  • It’s illegal to sell financial products through a ‘cold call’ or other unsolicited communication in New Zealand. 
  • If you receive a call, letter or email from a stranger about an investment opportunity, hang up, or ignore it.

See our lists of licensed providers.

Read our steps to protect yourself before you invest.