New Zealand Regulator Adds Extra Layer of Checks for Advisers Selling FX & Futures
Friday,31/01/2014|12:42GMTby
Adil Siddiqui
New Zealand's financial regulator has enhanced the licensing procedure for financial advisers promoting regulated financial instruments. Advisers will need to provide additional details to the regulators prior to gaining approval.
The main financial watchdog in New Zealand, Financial Markets Authority, that regulates financial markets products has increased the licensing procedure for Authorised Financial Advisers (AFAs). Under the new guidelines advisers will be required to supply references from key parties, show a Certificate of Standing from a professional body and additional information such as a CV and professional memberships. The move comes on the back of an ongoing programme to strengthen New Zealand’s regulatory environment.
The regulator's announcement for AFAs means advisers will need to fulfil enhanced requirements before gaining authorisation as an approved adviser. According to the notification on the regulator's website, the changes are focused on: “Testimonials and the introduction of a new Supplementary Application Information Form.”
Under the FMA’s authorisation AFAs can engage in a range of activities relating to financial transactions. These are categorised under different categories. Under Category 1. Advisers can deal in investment focus products which include; securities, land investment products, futures contracts and investment-linked insurance contracts. In addition, Category 2. Products which are generally less complex (non-financial).
AFAs are managed under legislation that was introduced in 2008, known as the Financial Advisers Act 2008. The legislation was introduced to create a regulated and efficient marketplace for financial services. According to the official documentation, the purpose of the act is to: “Promote the sound and efficient delivery of financial adviser and broking services, and to encourage public confidence in the professionalism and integrity of financial advisers and brokers.”
The additional checks the regulator will take for advisers are:
A testimonial from a manager, a peer and client
A Certificate of Standing from a professional body if appropriate. This replaces the Professional Body Testimonial.
Supplementary information: including a CV; details of professional memberships; copy of your ABS; DRS membership history; plus additional requirements for applicants whot have worked overseas.
The FMA regulates futures and OTC brokers offering currency trading. There are over 56 regulated brokers and banks.
New Zealand became an easy target for brokerage firms looking for lapsed regulations, the least corrupt nation in the world offers a two tier system. One mode of Regulation which regulates listed and OTC instruments with capital requirements similar to those in developed markets such as the UK and Singapore. And a second system which does not govern FX as such, but gives an impression of regulation under the Financial Service Providers Register (FSP), a directory of firms offering financial services products in New Zealand. The FSP registration process is being strengthened by the authorities, thus impacting the status of FX firms operating in the island nation.
Forex Magnates believes that FX brokers registered under the FSP will be gradually removed or migrated to full regulation under the FMA as regulated futures brokers (category 1) over the next 12 months.
The main financial watchdog in New Zealand, Financial Markets Authority, that regulates financial markets products has increased the licensing procedure for Authorised Financial Advisers (AFAs). Under the new guidelines advisers will be required to supply references from key parties, show a Certificate of Standing from a professional body and additional information such as a CV and professional memberships. The move comes on the back of an ongoing programme to strengthen New Zealand’s regulatory environment.
The regulator's announcement for AFAs means advisers will need to fulfil enhanced requirements before gaining authorisation as an approved adviser. According to the notification on the regulator's website, the changes are focused on: “Testimonials and the introduction of a new Supplementary Application Information Form.”
Under the FMA’s authorisation AFAs can engage in a range of activities relating to financial transactions. These are categorised under different categories. Under Category 1. Advisers can deal in investment focus products which include; securities, land investment products, futures contracts and investment-linked insurance contracts. In addition, Category 2. Products which are generally less complex (non-financial).
AFAs are managed under legislation that was introduced in 2008, known as the Financial Advisers Act 2008. The legislation was introduced to create a regulated and efficient marketplace for financial services. According to the official documentation, the purpose of the act is to: “Promote the sound and efficient delivery of financial adviser and broking services, and to encourage public confidence in the professionalism and integrity of financial advisers and brokers.”
The additional checks the regulator will take for advisers are:
A testimonial from a manager, a peer and client
A Certificate of Standing from a professional body if appropriate. This replaces the Professional Body Testimonial.
Supplementary information: including a CV; details of professional memberships; copy of your ABS; DRS membership history; plus additional requirements for applicants whot have worked overseas.
The FMA regulates futures and OTC brokers offering currency trading. There are over 56 regulated brokers and banks.
New Zealand became an easy target for brokerage firms looking for lapsed regulations, the least corrupt nation in the world offers a two tier system. One mode of Regulation which regulates listed and OTC instruments with capital requirements similar to those in developed markets such as the UK and Singapore. And a second system which does not govern FX as such, but gives an impression of regulation under the Financial Service Providers Register (FSP), a directory of firms offering financial services products in New Zealand. The FSP registration process is being strengthened by the authorities, thus impacting the status of FX firms operating in the island nation.
Forex Magnates believes that FX brokers registered under the FSP will be gradually removed or migrated to full regulation under the FMA as regulated futures brokers (category 1) over the next 12 months.
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We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
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We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
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#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
