MahiFX has been granted a license from Financial Markets Authority (FMA), bringing its comprehensive derivatives offering under the regulatory jurisdiction of New Zealand’s principal compliance entity.
The FMA has been one of the most active regulators in recent months, embarking on a pair of initiatives that has radically redefined the atmosphere in New Zealand for brokers. This includes the launch of Phase Two, as well as the relaxation of capital requirements for brokers in the country.
Under the new legislation, MahiFX is officially licensed to become a derivatives user in New Zealand, as stipulated by the regulations outlined in the landmark Financial Markets Conduct Act 2013.
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In addition to the FMA license, MahiFX is also regulated by the Australian Securities and Investments Commission (ASIC), with an additional Financial Conduct Authority (UK) approval pending, making it one of the more certifiable entities in the region.
In accordance with the Financial Markets Conduct Act, MahiFX has demonstrated the proper regulatory standards, including capitalization and liquidity requirements, and financial reporting obligations. Furthermore, MahiFX segregates all retail client funds from company funds.
According to MahiFX and MFX Compass’ CEO David Cooney in a recent statemen on the license, “We share the FMA’s aim to ensure greater fairness, efficiency and transparency in financial markets.”
“The fallout in the industry from recent market volatility highlights the importance for strengthening the rules to provide greater transparency and protection for clients. We’re very happy to sign up to that,” he added.