The New Zealand Financial Service Providers Register (FSPR) has deregistered the firm CTM GROUP LIMITED operating the forex brokerage Capital Trust Markets as of today, May 15, 2015. The FSPR is part of the New Zealand government under the Ministry of Business, Innovation and Employment.
Traders turned to the FSPR saying that CTM had ignored client requests for money withdrawals for the last several months, and within the last week their members’ page with account details was replaced with a white page and “Upgrade in Progress” message. This event seems to suggest that the FSPR does not intend to act against a firm whose clients raise complaints rather simply washing its hands of it.
According to documents seen by Finance Magnates, the clients were simply sent to seek help outside the regulatory system. The government response said: “CTM used to be registered on the Financial Service Providers Register (FSPR) which is overseen by the Companies Office however they have been deregistered from that and therefore no longer part of a disputes resolution scheme. You will need to seek legal advice about what other action is available to you.”
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If this is the way the FSPR handles complaints, clients can question the whole reliability of trading with New Zealand registered firms, as when they need the help of the authorities they are turned away to a potentially costly legal battle. Finance Magnates posed a similar question to the New Zealand’s Financial Markets Authority (FMA) in the recent case of Insolvent Broker Forex Trend, and will update when the regulator responds as promised.
On its website, Capital Trust Markets still writes that it is “registered with the New Zealand business registrar (Registration Number: 4623222) and is regulated by the FSPR of New Zealand (Registration Number: FSP339386) and is also a member of The Insurance & Savings Ombudsman Scheme Inc.”