Will New Zealand Follow Cyprus? Government Policy May Alienate FX Companies and Investors
by
Andrew Saks McLeod
Legal precedents which arise as a result of government action can on occasion lead to sudden implementation of such action on a global scale.
The recent proposals in Cyprus to impose a “haircut”, a move whereby the government taxes bank deposits, on all accounts in the nation has generated widespread discussion internationally.
As the future of Cyprus’ Forex industry still hangs in the balance following the Cypriot Parliament’s decision yesterday to veto the haircut, other jurisdictions are looking at going down the route of dipping into private bank deposits.
Potential Unlimited Bank Tax in New Zealand
The New Zealand government is now understood to be pursuing a policy whereby a depositor haircut can be imposed for all future bank failures. Discussions on this were initially opened by The Reserve Bank which consulted with registered banks on pre-positioning banks’ systems to ensure compatibility with the Open Bank Resolution (OBR) policy back in March 2011.
There is now speculation that the government is reopening these talks which would represent an important step in a government-wide process to fully implement the OBR policy.
The plan would not limit the haircuts to any percentage, but would simply set in place a law allowing the banks and the government to steal whatever is necessary from depositors to prop up the failing bank institution. Under such a law, depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.
New Zealand, a country far from the troubled European Union, has begun looking at imposing a levy on deposits, adding weight to the idea that banks and governments are keen to administer an across-the-board “haircut” to anyone foolish enough to trust the banks. Yesterday, Jorge Kraemer at Germany’s Commerzbank urged a 15% haircut for Italy. Now bankers in New Zealand are suggesting “haircuts” on all account holders to bail out banks and other financial concerns.
This could not come at a worse time, as New Zealand’s regulator, the Financial Markets Authority (FMA) and register of Financial Services Providers (FSP) have been engaging in establishing stricter operating practices for Online Trading companies registered in New Zealand. Just recently, the New Zealand FSP issued registered firms with a notice explaining that they must have a physical office in New Zealand, with compliance and banking in the country.
All registered entities which did not do this had their registration terminated. Furthermore, the authorities terminated 250 firms’ licenses over the last few months as part of the implementation of the new regulatory framework.
Australia and New Zealand have been held in high esteem in recent times as regions in which a broker can establish its operations, enjoy close proximity to the Asia Pacific region and its potential as a region which is home to many forex traders, and offer clients the security that the company is operating from a country with a good economy, untroubled by the financial disasters elsewhere in the world.
Now that there are discussions about the powers that be dipping their hand into private bank accounts in New Zealand, it may, along with the regulatory purges, become a far less attractive territory for forex companies to establish their operations, and could lead to divestment from New Zealand by existing forex brokers and their clients.
Legal precedents which arise as a result of government action can on occasion lead to sudden implementation of such action on a global scale.
The recent proposals in Cyprus to impose a “haircut”, a move whereby the government taxes bank deposits, on all accounts in the nation has generated widespread discussion internationally.
As the future of Cyprus’ Forex industry still hangs in the balance following the Cypriot Parliament’s decision yesterday to veto the haircut, other jurisdictions are looking at going down the route of dipping into private bank deposits.
Potential Unlimited Bank Tax in New Zealand
The New Zealand government is now understood to be pursuing a policy whereby a depositor haircut can be imposed for all future bank failures. Discussions on this were initially opened by The Reserve Bank which consulted with registered banks on pre-positioning banks’ systems to ensure compatibility with the Open Bank Resolution (OBR) policy back in March 2011.
There is now speculation that the government is reopening these talks which would represent an important step in a government-wide process to fully implement the OBR policy.
The plan would not limit the haircuts to any percentage, but would simply set in place a law allowing the banks and the government to steal whatever is necessary from depositors to prop up the failing bank institution. Under such a law, depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.
New Zealand, a country far from the troubled European Union, has begun looking at imposing a levy on deposits, adding weight to the idea that banks and governments are keen to administer an across-the-board “haircut” to anyone foolish enough to trust the banks. Yesterday, Jorge Kraemer at Germany’s Commerzbank urged a 15% haircut for Italy. Now bankers in New Zealand are suggesting “haircuts” on all account holders to bail out banks and other financial concerns.
This could not come at a worse time, as New Zealand’s regulator, the Financial Markets Authority (FMA) and register of Financial Services Providers (FSP) have been engaging in establishing stricter operating practices for Online Trading companies registered in New Zealand. Just recently, the New Zealand FSP issued registered firms with a notice explaining that they must have a physical office in New Zealand, with compliance and banking in the country.
All registered entities which did not do this had their registration terminated. Furthermore, the authorities terminated 250 firms’ licenses over the last few months as part of the implementation of the new regulatory framework.
Australia and New Zealand have been held in high esteem in recent times as regions in which a broker can establish its operations, enjoy close proximity to the Asia Pacific region and its potential as a region which is home to many forex traders, and offer clients the security that the company is operating from a country with a good economy, untroubled by the financial disasters elsewhere in the world.
Now that there are discussions about the powers that be dipping their hand into private bank accounts in New Zealand, it may, along with the regulatory purges, become a far less attractive territory for forex companies to establish their operations, and could lead to divestment from New Zealand by existing forex brokers and their clients.
Interactive Brokers Expands Offerings with Daily Options on French Stocks
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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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/
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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!
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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
📣 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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