FMA head of primary regulatory operations Sue Brown said the regulator had noticed a recent increase in promotion of investments that don't fall under the Securities Act or the Securities Markets Act, the main pieces of investment law it is responsible for.

"Some products might just fall outside what we can do and can't do.  Some examples include gold bullion and other commodities and also racing syndicates and gambling schemes that try to beat the market."

Brown said the products promoted weren't necessarily dodgy but the FMA was concerned investors would wrongly think they were regulated by it.

"The risk is they're getting promoted as investments but they are not the types of investments we regulate, so they're not under our control," she said.

"That's not to say they are all risky but sometimes things go wrong.  Our concern is that people might have a false sense of security about them."

Brown said the FMA would take what action it could in each situation, for example making sure people or companies offering finance are registered as financial service providers. 

In other cases the FMA might issue clear warnings to the public about particular products, or refer cases to the SFO if fraud is suspected.

However, she said the best protection for the public is education, and good financial advice is crucial in ensuring potential investors understand these fringe products; advisers themselves must also pay close attention to make sure they understand them.

Brown said gold, which has been in the headlines recently with the collapse and subsequent SFO investigation into Bullion Buyer, is a particularly popular investment in the current economic climate.

"In times of financial stress people look to gold as something you can get hold of.  People understand what gold is - it's easier to understand than a debt security or a share or something."

She also noted that under the Financial Markets Conduct Bill, which recently had its first reading in Parliament, the FMA will have the power to "call in" investments that are seen to be structured to avoid its jurisdiction.