A couple of years ago, New Zealand forex brokers were required to follow a simple registration procedure with the FSPR in order to provide financial services. The regulatory requirements for forex brokers and financial services providers in general used to be very loose, however after a number of signals and complaints from clients received, New Zealand’s authorities have begun cleaning up the mess. Many brokerages established their operations in the country and subsequently shut down and a number of those companies proved to be connected to offshore owners so authorities started deleting registrations and introducing some new rules.
Currently, in order to be registered as financial services providers, applicants must comply with the following:
1) The companies must be registered in in New Zealand and must have a physical office there;
2) Within the office must be employed a at least one Director (having adequate financial competence), who is a New Zealand resident;
3) All client record keeping, KYC and AML procedure must be handled from a New Zealand office (in order to facilitate on-site compliance inspections);
4) The company must comply with the business laws within the jurisdiction of New Zealand.
Furthermore, Financial Markets Conduct Act 2013 introduces licensing regime for providers offering certain types of financial services. Forex brokers, addressed as “derivatives issuers” must be regulated by the Financial Markets Authority (FMA) and must meet a set of standards for financial resources and professional indemnity insurance.
Additionally, a minimum capital requirement for forex brokers is about to be introduced in 2016. Forex brokers will be required to hold net tangible assets amounting to at least $1,000,000. in order to see “the big picture”, the minimum capital requirement for a obtaining a forex broker license is $20 million in USA; CHF 20 million in Switzerland, EUR 1 million in Cyprus and 730 000 EUR in UK.
|MT4||1.8||1:500||$200 ($50 in NZ)||Review|