Bold opening: A financial adviser’s career is over after seven-year bans and a hefty penalty for chasing money he shouldn’t have touched. And here’s the twist that many readers miss: the misconduct happened after he stepped away from the role.
Former Auckland financial adviser David McEwen has been banned from running a company, serving as a director or promoter, and providing financial advice for seven years. He was also fined $15,000 and his bid for a discharge without conviction was rejected. The suspension stems from his ongoing attempts to solicit funds from clients in violation of a regulatory order designed to shield them from harm.
McEwen, who previously operated out of Auckland, and several related entities, were served with the stop order by the Financial Markets Authority (FMA) in December 2023. The FMA’s enforcement team noted that McEwen breached the order almost immediately after it was issued.
Enforcement head Margot Gatland explained that the FMA’s priority is to prevent and address substantial harm to consumers and the financial system. She stated that McEwen breached the stop order “in various ways almost immediately after it was made,” including continuing to seek funds from former clients and successfully obtaining around $17,000 after the order’s issuance.
The stop order barred McEwen and associated entities from offering, issuing, selling, or disposing of financial products, distributing any restricted communications, and accepting further contributions, investments, or deposits related to McEwen and Associates’ products.
In December 2024, the FMA filed criminal charges, alleging he continued to make offers of financial products and accept contributions in violation of the stop order.
The FMA has previously cautioned about financial products linked to McEwen or his affiliated businesses, including guidance for former and current clients to review their credit and debit card statements for any unauthorized charges. The authority has received complaints suggesting unauthorized card payments may have been charged to clients’ accounts.
What this means for readers: when regulators issue a stop order, attempting to work around it can lead to severe consequences, including extended bans and fines. If you’re ever unsure about a financial adviser’s compliance status, consult the regulator’s public warnings and ensure you have documented, clear lines of communication and consent for any financial transactions.
