Warning Investment Programme Management Incorporated
The Securities Commission warns people about a scheme run by Investment Programme Management Incorporated. The scheme
involves 3 programmes for dealing in futures contracts.
The Commission has banned advertising for the scheme which has been distributed in Auckland and Hamilton. The scheme
has no investment statement or registered prospectus. Neither Investment Programme Management Incorporated nor the New
Zealand distributors are authorised futures dealers.
Investment Programme Management Incorporated is registered in Belize, Central America and has offices in Malaga, Spain.
It has been distributed in New Zealand by a small number of financial planners.
The documents claim that investors can nominate how much of their capital is at risk and claims that the rest is “fully
protected and is at no risk. The documents claim to “guarantee” that losses cannot exceed the amount nominated by the
investor.
Any advertisement that claims a financial product is free from risk is likely to mislead investors and is in breach of
securities law. Any advertisement that says securities are guaranteed must also state the name of the guarantor, the
nature and amount of the guarantee and whether or not the guarantee is secured. The offer documents do not provide all
this information.
The programmes claim to have provided very high historical returns. On evidence given to the Commission, returns are
very volatile. This is a high risk investment. Losses can be high. The offer documents do not adequately disclose the
risks of the investment.
‘We remind investment advisers that futures dealers are required to be authorised by the Commission,” Jane Diplock
says. “And we again warn investors about schemes which promise unusually high returns and which do not have a registered
prospectus and investment statement.”