Breaking: Offshore New Zealand Brokers Exempted from NZ$ 1M Capital Requirement
- According to the New Zealand Financial Markets Authority, if brokers are not offering their services to New Zealand residents, there is no need to get licensed by the regulator, but only register on the FSPR.
According to information provided to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reporters by Cypriot law firm A.G. Paphitis & Co, brokers who are domiciled in New Zealand, but don’t provide financial services to clients in the country, are not faced with the need to park a hefty minimum capital requirement totalling NZ$ 1 million. However, they still need to meet other relevant provisions under the regulatory framework in the country.
According to current legislation, the New Zealand Financial Markets Authority (FMA) does not require offshore brokers to get licensed by it in order to provide their services outside the country. However, they still need to have a valid registration with the country’s Financial Service Providers Register (FSPR).
The brokers who meet all of the requirements to register with the FSPR should be able to continue their operations normally.
The news comes only days after the official announcement by the FMA about the launch of the second phase of its regulatory effort--licensing provisions, which have affected several hundred businesses and triggered a substantial shift in the quality of investor disclosure for financial products in New Zealand.
With the new Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term implementation, New Zealand authorities are building a solid regulatory cushion primarily for the convenience of local investors. While there are no guarantees about the future of the local financial-intermediaries regulatory framework, the FMA has repeatedly stated that it boasts one of the most modern ones in the world.
However, it is up to the clients of the brokers to establish whether they can sufficiently trust a New Zealand registered company, knowing that they do not enjoy the same treatment as New Zealand residents.
According to information provided to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates reporters by Cypriot law firm A.G. Paphitis & Co, brokers who are domiciled in New Zealand, but don’t provide financial services to clients in the country, are not faced with the need to park a hefty minimum capital requirement totalling NZ$ 1 million. However, they still need to meet other relevant provisions under the regulatory framework in the country.
According to current legislation, the New Zealand Financial Markets Authority (FMA) does not require offshore brokers to get licensed by it in order to provide their services outside the country. However, they still need to have a valid registration with the country’s Financial Service Providers Register (FSPR).
The brokers who meet all of the requirements to register with the FSPR should be able to continue their operations normally.
The news comes only days after the official announcement by the FMA about the launch of the second phase of its regulatory effort--licensing provisions, which have affected several hundred businesses and triggered a substantial shift in the quality of investor disclosure for financial products in New Zealand.
With the new Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term implementation, New Zealand authorities are building a solid regulatory cushion primarily for the convenience of local investors. While there are no guarantees about the future of the local financial-intermediaries regulatory framework, the FMA has repeatedly stated that it boasts one of the most modern ones in the world.
However, it is up to the clients of the brokers to establish whether they can sufficiently trust a New Zealand registered company, knowing that they do not enjoy the same treatment as New Zealand residents.