The New Zealand’s Financial Market Authority (FMA) is putting new pressure on the Tongan community to crack down on Validus illegal activities.
It has released an investment warning against Validus in the Tongan language.
It urges the public to report any further promotions of the company in the country after its February ban which made it illegal for anyone who advertises, supports or joins Validus.
‘Fakatokanga : Validus’, the title of the warning says in Tongan. In English it means Warning : Validus.
The New Zealand authority appeals to the public to exercise caution in dealing with this company and its associates.
“Please come forward with any complaints about Validus, especially if you have made investments or deposits”.
All information submitted to FMA are confidential, it said.
The full version of the Tongan warning against Validus which FMA has published on its official Facebook account, is published verbatim below.
It said:
‘Oku tonu ke tokanga a e kakai ‘i heenau ngāue’aki ‘a e Validus mo ‘enau kau ngāue. ‘Oku kole atu ‘a e FMA ki he kakai ke nau ‘omai ha lāunga pe ko ha fakamatala ‘o kau ki he kautaha ko ‘eni’, tautefito ‘o kapau na’a nau foaki, ‘inivesi pe fakahū ha pa’anga ki he kautaha ko ‘eni mo ‘enau kau ngāue’.
Ko e ngaahi fakamatala kotoa ko ‘eni ‘oku malu’i.
Kuo hanga ‘e he FMA ‘o tu’utu’uni ke ta’ofi fakataimi ki he lelei ‘a e kakai ‘oku ‘i ai ha tu’atamaki ‘e lava ke hoko ki he kau ‘inivesi mo ha maumau mei he ngaahi ‘ekitivitī ‘a e Validus mo ‘enau kau ngāue’, he ‘oku ‘asi mai ‘a e ta’efaitotonu pea mo ha takihala’i.
Validus campaigns had been recently active in the Tongan community in New Zealand, Australia and Tonga.
FMA previously said ‘an interim stop order has been issued against Validus International as there is a real risk of investor harm’.
The New Zealand warning in Tongan came as the Tongan government is expected to make an announcement this week after Validus arrived in Tonga recently.
It is understood Validus is not registered to operate as a financial institution in New Zealand, Tonga and Australia. This meant, any activities Validus and its promoters had conducted in these countries are illegal.
On February 16 FMA issued an interim ban against Validus.
It said: “The FMA is considering whether it may exercise a power under section 462 of the Act because it appears that Validus and Associates intend to hold a marketing event at the Jetpark Hotel, 63 Westney Road, Mangere, Auckland on or about 15 February 2023 at which the FMA believes Validus and Associates will distribute to persons attending the event communications that, in terms of section 462(1)(f) of the Act, are restricted communications relating to an offer, or intended offer, of financial products, or the supply, or possible supply, of financial services that:
• are false or misleading, or likely to mislead or confuse, in a material particular; and
• contains a material misdescription or material error; and
• do not comply with the Act or the regulations made under the Act.
Validus said it ‘helps individuals build life-changing skills to flourish in their business by understanding the market more closely and effectively”.
Tongan promoters argue that Validus is ‘an educational platform’ which critics said was a misleading reference to the company.
The Australian Securities & Investment Commission said Validus is a scam and warned people to be wary of the company.
“Validus encourages investors to recruit new investors into the scheme. This is a classical sign of a pyramid scheme”, it said.
The FMA previously said: “We are concerned that Validus is operating in breach of the New Zealand financial markets legislation.
“Validus is providing financial services in New Zealand without registration as a financial service provider as required by the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
