The Tongan government will look at the Dubai-based Validus after the New Zealand Financial Market Authority put a temporary ban on the promotion of the company’s multi-level marketing scheme.
The Deputy Prime Minister and Minister of Justice Samiu Vaipulu has confirmed this to Kaniva News.
“‘E fai ‘a e ngāue ki ai”, he said in Tongan.
Promoters of Validus, which is registered in the United States, are prohibited in New Zealand from:
- making offers, issues, sales or other acquisitions or disposals of financial products promoted under the brand or name Validus; and
- accepting applications for financial products promoted under the brand or name Validus; and
- distributing any restricted communication that relates to:
- the offer, or intended offer, of financial products promoted under the brand or name Validus; and/or
- the supply, or possible supply, of a financial advice service to any person; and
- accepting further contributions, investments, or deposits in respect of financial products promoted under the brand or name Validus; and
- supplying a financial advice service to any person; and
- supplying the financial service of keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons”.
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.
“We strongly recommend that investors do not trade or invest with entities that are not registered and/or licensed in New Zealand.”
The company has expanded its services to include Tonga with promoters from Australia and New Zealand arriving in the kingdom recently.
It came after promotions on social media including setting up of a Facebook account under the name Validus Tonga. It has more than a thousand followers.