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 system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others. 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 system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others. 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?
[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 system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others. 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 system of checks and balances that prevents fraud and inefficiencies.Additionally, this also ensures cooperation with federal financial regulations with the ultimate goal of protecting the public and provide needed information to governmental agencies to stop fraud, money laundering, and terrorist funding. Compliance in the financial industry offers stability to the markets and serves to protect customers, workers, and taxpayers from ethical threats that are inherited in individual decisions.Many organizations are also obligated to track and store compliance data. This includes all data that is relevant or belongs to a company, brokerage, etc. that can be used for the purpose of implementing or validating compliance or regulatory reporting.Given shifting regulations and the importance of compliance, the use of advanced software is increasingly being implemented to help companies manage their compliance data more efficiently. This cache includes calculations, data transfers, and audit trails.While finance is a globally unified concept, compliance is not. Regulatory compliance varies across both industries and jurisdictions. For example, the financial regulatory structures of one country may be lacking or different in another. Of note, the most tightly regulated jurisdictions in terms of compliance in the forex industry include the United States, United Kingdom or most European Union countries, Australia, New Zealand, Canada, and others. 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?
[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.