Advisory Warning No. 2 of 2008 (NewNetQuest) (2008-07-25)

Summary

This is a public advisory issued by the British Virgin Islands Financial Services Commission on 25 July 2008, warning that NewNetQuest is suspected of operating as a pyramid scheme targeting BVI residents. It is issued under section 4(1)(l) of the Financial Services Commission Act, 2001, which empowers the Commission to issue such warnings to the public.

• Nature of concern: NewNetQuest is described as a potential pyramid scheme that may be disguised as a legitimate investment opportunity, offering high returns or shares of advertising revenue funded by new investors rather than genuine earnings.
• Regulatory status: The Commission confirms it does not regulate, authorise, or endorse NewNetQuest or similar schemes.
• Public guidance: Members of the public are advised to exercise extreme caution when dealing with NewNetQuest and other pyramid schemes due to the risk of financial loss.
• Reporting invitation: The public is invited to report information on questionable entities operating in or from the BVI to the Commission via email or phone.

This is an informational public warning rather than a rule imposing compliance duties on regulated entities; it does not create licensing, filing, or reporting obligations for financial services firms.