New Zealand's FMA Issues Warning Against Hangsiu Group Ltd

The Financial Markets Authority (FMA), New Zealand’s financial markets regulatory body, today updated its warning list to include Hangsiu Group Ltd, the latest entry to be categorised as “unregulated business”.

The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

Hangsiu Group Ltd, which claims to be located in Auckland, New Zealand, offers a range of investment products including Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, commodities, stocks, indices, futures and funds. However, according to the FMA, it does not possess the appropriate licenses to provide trading services in the country.

This is a further example of guidance published by the New Zealand watchdog in recent months. In March 2016, the FMA warned against the unlicenced activities of DGM Service Markets Ltd for a similar offence.

Businesses or individuals offering financial products or services in New Zealand are registered on the Financial Service Providers Register (FSPR). The FMA’s warning list includes those that are not registered on the FSPR, which means they are not allowed to offer financial services in New Zealand, even if they say they are.

The FMA became concerned about Hangsiu Group Ltd’s website, which claims that “it is authorised and regulated by the FMA and can guarantee security of customers funds”. It further noted that Hangsiu Group Ltd was deregistered from the Financial Service Providers Register on 9 April 2016.

As an agency with a critical role in regulating capital markets and financial services in New Zealand, the FMA has confirmed that Hangsiu Group Ltd is not registered to provide financial services in New Zealand and for this reason it has made it onto its warning list.