With the latest batch of changes in Vanuatu making the regulatory destination much less attractive, the industry has been looking at other jurisdictions for offshore subsidiaries. That said, the new framework in the country is not closing its doors to the industry, and some firms may yet find it prudent to support the local license despite the regulatory reform.
To find out the deepest details about the framework we sat down with Tal Itzhak Ron and Stephanie Attias from Tal Ron, Drihem & Co. The duo has extensive knowledge about this and other jurisdictions and was keen to share the details that brokers should have in mind if they decide to explore Vanuatu as a regulatory home.
With the new mandate for local directors kicking in, the main question for brokers who are holding local licenses has been if they can find enough staff to be locally based and cover the regulator’s requirements for locally-based directors.
“It is not an easy task, but we have successfully managed to hire several qualified personnel from Australia, Fiji, France, and New Zealand for this job,” Tal and Stephanie explain.
Local Office Requirements
With the requirements for a local office adding to costs of maintaining the license active, the pool of local directors who are a natural person, and have at least five years of experience dealing in securities is very limited.
“It also became an obligation for such director(s) or manager(s) of the company to reside in Vanuatu for six months within each year. The purpose of this new amendment is to allow the VFSC to monitor licensees under the Act and to conduct onsite inspections locally,” the duo from Tal Ron, Drihem & Co elaborated.
Asked about the systems which the company would have to maintain, Tal and Stephanie explained: “Each company listed under the VFSC will have to operate from a physical premise located in Vanuatu, which maintains the following systems: a filing system; a management and accounting system; a business continuity system; and a software system with a server.”
Despite the local office, the company is not allowed to offer its products within the country.
Time to Adjust & Alternatives
The transitional period which the VFSC outlined for brokers to adapt to the new regulations expires in less than three months on the 7th of July, 2019. Companies which are already authorized before the commencement of the new Regulation must apply within six months from the commencement for a Class A, Class B or Class C Principal’s License.
Our interviewees outlined that if a company fails to make such an application, the principal’s license issued to that company will expire after six months from the commencement of the new Act in July. The new classes of dealer licenses are for different sorts of securities.
“Class A Licenses deal with: debenture stocks; loan stock, bonds; certificates of deposit; or proceeds of foreign Exchange . Class B Licenses deal with: future contracts and derivative products but not limited to futures and options. Class C Licenses deal with: shares in share capital of a corporation; proceeds of precious metals; proceeds of commodities; a right under despite whether or not conferred by warrant, subscriptions for shares of debt securities; a right under depository receipts; an option to acquire or dispose of any security falling within any other provision of the Act; a right under a contract for the acquisition of securities,” Tal and Stephanie explained.
With the strict new guidelines, the attractiveness of Vanuatu’s regulatory framework has diminished materially. When it comes to cryptocurrency-oriented jurisdictions, Tal and Stephanie are recommending to look at Estonia and Malta. As for brokers, Marshall Islands, Bermuda and Belize remain attractive. In the meantime, St Vincent has lost its importance after recent local developments and their implementation by banks.
“The final choice is up to personal preferences and business goals, but companies should always make sure to get efficient legal, compliance and banking support in order to set up a business with the most appropriate regulatory regime,” Tal and Stephanie said in conclusion to our talk.
With the latest batch of changes in Vanuatu making the regulatory destination much less attractive, the industry has been looking at other jurisdictions for offshore subsidiaries. That said, the new framework in the country is not closing its doors to the industry, and some firms may yet find it prudent to support the local license despite the regulatory reform.
To find out the deepest details about the framework we sat down with Tal Itzhak Ron and Stephanie Attias from Tal Ron, Drihem & Co. The duo has extensive knowledge about this and other jurisdictions and was keen to share the details that brokers should have in mind if they decide to explore Vanuatu as a regulatory home.
With the new mandate for local directors kicking in, the main question for brokers who are holding local licenses has been if they can find enough staff to be locally based and cover the regulator’s requirements for locally-based directors.
“It is not an easy task, but we have successfully managed to hire several qualified personnel from Australia, Fiji, France, and New Zealand for this job,” Tal and Stephanie explain.
Local Office Requirements
With the requirements for a local office adding to costs of maintaining the license active, the pool of local directors who are a natural person, and have at least five years of experience dealing in securities is very limited.
“It also became an obligation for such director(s) or manager(s) of the company to reside in Vanuatu for six months within each year. The purpose of this new amendment is to allow the VFSC to monitor licensees under the Act and to conduct onsite inspections locally,” the duo from Tal Ron, Drihem & Co elaborated.
Asked about the systems which the company would have to maintain, Tal and Stephanie explained: “Each company listed under the VFSC will have to operate from a physical premise located in Vanuatu, which maintains the following systems: a filing system; a management and accounting system; a business continuity system; and a software system with a server.”
Despite the local office, the company is not allowed to offer its products within the country.
Time to Adjust & Alternatives
The transitional period which the VFSC outlined for brokers to adapt to the new regulations expires in less than three months on the 7th of July, 2019. Companies which are already authorized before the commencement of the new Regulation must apply within six months from the commencement for a Class A, Class B or Class C Principal’s License.
Our interviewees outlined that if a company fails to make such an application, the principal’s license issued to that company will expire after six months from the commencement of the new Act in July. The new classes of dealer licenses are for different sorts of securities.
“Class A Licenses deal with: debenture stocks; loan stock, bonds; certificates of deposit; or proceeds of foreign Exchange . Class B Licenses deal with: future contracts and derivative products but not limited to futures and options. Class C Licenses deal with: shares in share capital of a corporation; proceeds of precious metals; proceeds of commodities; a right under despite whether or not conferred by warrant, subscriptions for shares of debt securities; a right under depository receipts; an option to acquire or dispose of any security falling within any other provision of the Act; a right under a contract for the acquisition of securities,” Tal and Stephanie explained.
With the strict new guidelines, the attractiveness of Vanuatu’s regulatory framework has diminished materially. When it comes to cryptocurrency-oriented jurisdictions, Tal and Stephanie are recommending to look at Estonia and Malta. As for brokers, Marshall Islands, Bermuda and Belize remain attractive. In the meantime, St Vincent has lost its importance after recent local developments and their implementation by banks.
“The final choice is up to personal preferences and business goals, but companies should always make sure to get efficient legal, compliance and banking support in order to set up a business with the most appropriate regulatory regime,” Tal and Stephanie said in conclusion to our talk.
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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