What Can Clients of Insolvent Ukrainian Broker Forex-Trend Do?
- The New Zealand FDR will not be able to force complaints to have priority in a situation where the broker already has a liquidator appointed
As many readers of our Russian site were concerned by New Zealand's warning against the Ukrainian Broker Forex Trade, Finance Magnates contacted the relevant authorities for response. In the meantime we turned to an expert to see what can the traders do. Sophie Gerber is the director of the Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term and legal firm Sophie Grace which specialises in Australian, New Zealand and international licensing and legal requirements for financial services companies.
Who is entitled to approach the FDR, are there any minimum requirements in terms of funds?
Anyone can approach the FDR. There is no minimum requirement in terms of funds, however they may first require you to go 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 Trend and lodge your complaint with them to see if you can achieve a resolution first. However in this situation, given it is proving to be an issue affecting lots of people which has been publicly announced by the FMA, I imagine FDR will accept the dispute straight away.
[This situation is the inverse of the article we wrote last week about how brokers can deal with complaints]
If a liquidator is appointed, after the fees associated with that process, there won't be much money to distribute to clients
How long does it usually take to settle such claims?
If Forex Trend does not capitulate and provide you with the desired outcome at the beginning, it may take several months to achieve a finding from the FDR and even longer to implement the decision (i.e. get any money back).
What are clients' prospects of withdrawing funds via the FDR, and are the authority's abilities to enforce its decisions?
I believe it will be quite difficult given the FMA has received information that the company cannot meet its debts and a liquidator is going to be appointed. The FDR will not be able to force complaints that have gone through to have priority in a situation where Forex Trend already has a liquidator appointed.
Unfortunately, if a liquidator is appointed, after the fees associated with that process, there won't be much money to distribute to clients. Without knowing much about Forex Trends, it appears that they may have had a system in place where client monies were sent to the Ukraine for hedging purposes - in which case it will be very difficult for the liquidator to unwind these transactions and get the money back to New Zealand to distribute to affected clients.
Are there any suggestions to non NZ residents who try to withdraw funds from the company?
The same as above applies to non NZ residents.
As many readers of our Russian site were concerned by New Zealand's warning against the Ukrainian Broker Forex Trade, Finance Magnates contacted the relevant authorities for response. In the meantime we turned to an expert to see what can the traders do. Sophie Gerber is the director of the Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term and legal firm Sophie Grace which specialises in Australian, New Zealand and international licensing and legal requirements for financial services companies.
Who is entitled to approach the FDR, are there any minimum requirements in terms of funds?
Anyone can approach the FDR. There is no minimum requirement in terms of funds, however they may first require you to go 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 Trend and lodge your complaint with them to see if you can achieve a resolution first. However in this situation, given it is proving to be an issue affecting lots of people which has been publicly announced by the FMA, I imagine FDR will accept the dispute straight away.
[This situation is the inverse of the article we wrote last week about how brokers can deal with complaints]
If a liquidator is appointed, after the fees associated with that process, there won't be much money to distribute to clients
How long does it usually take to settle such claims?
If Forex Trend does not capitulate and provide you with the desired outcome at the beginning, it may take several months to achieve a finding from the FDR and even longer to implement the decision (i.e. get any money back).
What are clients' prospects of withdrawing funds via the FDR, and are the authority's abilities to enforce its decisions?
I believe it will be quite difficult given the FMA has received information that the company cannot meet its debts and a liquidator is going to be appointed. The FDR will not be able to force complaints that have gone through to have priority in a situation where Forex Trend already has a liquidator appointed.
Unfortunately, if a liquidator is appointed, after the fees associated with that process, there won't be much money to distribute to clients. Without knowing much about Forex Trends, it appears that they may have had a system in place where client monies were sent to the Ukraine for hedging purposes - in which case it will be very difficult for the liquidator to unwind these transactions and get the money back to New Zealand to distribute to affected clients.
Are there any suggestions to non NZ residents who try to withdraw funds from the company?
The same as above applies to non NZ residents.