The New Zealand Financial Markets Authority has issued a formal warning to Andrew James Sturge, the sole director and shareholder of Managed Forex Hub Ltd, for circulating misleading marketing material.

It has done so in accordance with s9 Financial Markets Authority Act 2011.

On 12 September 2013, Sturge set up Managed Forex (Company Number: 4599319 – removed on 15 December 2017) and was its sole shareholder and director. It operated as an introducing broker to an overseas entity, AP Holdings, which offered foreign exchange services to HNW customers through its website at www.managedforexhub.com. Managed Forex also ran its own website, www.managedforexhub.co.nz, which was linked to AP Holdings’s ‘parent’ website and included marketing materials for AP Holdings and Managed Forex.

As an introducing broker, Managed Forex stood to receive a percentage of any profits made by clients that it introduced to AP Holdings.

In the FMA’s view, the website contained misleading and deceptive representations which related to AP Holdings’ registration as a provider of financial services on the Financial Service Providers Register. It also said, misleadingly, that Managed Forex had full discretion over the trading and management of trade strategies and that it belonged to a dispute resolution scheme.

Part 2 Financial Markets Conduct Act 2013 forbids deceptive conduct to do with financial products.

When the FMA contacted him, Sturge failed to comply with his obligations in relation to a notice pursuant to s25 FMAA and offered no reasonable excuse for his failure. In doing this he contravened s61. Everybody who commits such an offence is liable on conviction to a fine not exceeding NZ$300,000. It is not, however, taking legal action in this case.