Auckland Financial Advisor Scandal: David McEwen Flees Country

Story Highlights

• FMA revokes Stockfox Limited’s license and bans director David McEwen for misconduct and unsubstantiated claims.
• McEwen’s actions potentially harmed clients and violated the Financial Markets Conduct Act, damaging trust in the financial advice industry.
• McEwen flees New Zealand amid the scandal, leaving clients vulnerable as the FMA investigates the extent of his misconduct.

The Financial Markets Authority (FMA) of New Zealand has revoked the license of Stockfox Limited, an Auckland-based financial advice firm, following a series of investigations into the company’s director, David McEwen. The FMA deemed McEwen “not a fit and proper person” to provide financial services and found Stockfox incapable of effectively performing its duties as a licensed Financial Advice Provider (FAP).

Misconduct and Unsubstantiated Claims

The FMA’s investigation revealed that McEwen, a former business journalist, had engaged in a pattern of misconduct, including distributing false and misleading marketing materials and making unsubstantiated claims about the value of financial products offered to investors. These products included convertible note agreements, shares, and options to acquire units in limited partnership agreements. McEwen’s actions violated the Financial Markets Conduct Act and potentially caused harm to his clients, breaching their trust and damaging the reputation of the financial advice industry.

David McEwen on the Run

As the sole director and financial adviser of Stockfox, McEwen’s misconduct has left his clients in a vulnerable position. The FMA has given Stockfox 20 days to notify clients and assist them in transferring their business to another FAP. However, McEwen has reportedly fled New Zealand, with no plans to return. His sudden departure, coupled with his family ties in Australia and Japan, has raised suspicions about the extent of his misconduct and its potential impact on investors.

The FMA’s decisive action in canceling Stockfox’s license and banning McEwen serves as a stark reminder of the importance of integrity, transparency, and compliance in the financial advice industry. As the investigation unfolds, the full scope of the scandal and its consequences for investors remains to be seen. This case highlights the crucial role of financial regulators in safeguarding the interests of the public and maintaining the stability and trust in financial markets.