Alpari has formally withdrawn its application with the Malta Financial Services Authority (MFSA). The company has been in recent quarters aiming to refocus its attention on the European markets and is likely to pursue different options, the firm has confirmed in a statement to Finance Magnates.
The brokerage has successfully consolidated its brand after the majority shareholder of the company Andrey Dashin purchased the intellectual property of the brand in Europe in the aftermath of the special administration of Alpari UK. Back in March last year, Finance Magnates reported that the company is looking to establish a new EU-regulated subsidiary.
With the technology in place and some solid brand reputation especially in a number of Eastern European markets, the firm is committed to establishing a European STP (straight through processing) regulated subsidiary.
Speaking to Finance Magnates, the CEO of Alpari Research & Analysis Limited, Roberto d’Ambrosio, elaborated: “Alpari is interested in enhancing its global presence. The licensing process of forex brokers, in general and in Europe in particular, has become very strict, implying a great deal of due diligence and project evaluation efforts from both the licensing companies and the Regulators.”
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“Alpari is willing to pursue its new license in Europe giving all possible comfort to the European regulators to carry on their duties unpressured, while at the same time safeguarding its right to choose what it considers to be its best option. As a result, we have decided to withdraw our license application in Malta and we are actually pursuing different options,” D’Ambrosio added.
Malta Unpopular with Forex Brokers, but New Destinations Rising
The company has a wide array of options for a European Union passporting of regulation. Recently some new destinations have emerged, including Bulgaria and Estonia. While the regulators in these countries have not been widely popular, the operational costs of running a brokerage business in these Eastern European countries could be much lower than in Cyprus.
With the talent pool remaining a challenge for the industry, the main hurdles when establishing a European base of operations in such untypical destinations relates mostly to thorough research of the labor market and an accurate assessment of the costs associated with such an operation.
A number of forex brokers have withdrawn from Malta, as the local regulator is rumored to have become very unwelcoming of forex brokers in recent years. With the regulatory challenges for the retail financial industry requiring substantial resources, the small island nation’s regulator has decided to step away from the sector