FMA warns against KiwiSaver high pressure sales techniques

Thursday 9th June 2011 1 Comment

The Financial Markets Authority (FMA) said it has taken steps to stop unregistered KiwiSaver sales representative Patrick Diack from using high pressure sales techniques.

Diack has been a sales representative for several KiwiSaver schemes, most recently operating in the lower North Island. He has been soliciting members of the public outside Winz offices, offering them money to join KiwiSaver and signing them up to scheme membership without providing them with the investment statement. His actions breached the Securities Act.

"High pressure or coercive sales techniques are inappropriate for KiwiSaver schemes and residential door-to-door selling of any security is prohibited by the Securities Act," FMA chief executive Sean Hughes said.

Diack has also failed to comply with the requirement from March 31 to be registered as a financial services provider.

Investors can check whether a person or firm offering a financial service is registered on the Financial Service Providers Register at www.fspr.govt.nz. A list of AFAs is published on the FMA website www.fma.govt.nz.

NZPA

Comments from our readers

On 9 June 2011 at 9:00 pm patrick diack said:

it was easy i have seen people transfer thousands of dollars from their existing provider( thanks AXA) to the one i was selling, would approach them "how would you like $10.00 i get paided $30.00 i give you $10.000 i make $20.00 often i would sign up 20 per day, one day even got 35. Thank you to the good people of Flaxmere