New Zealand's regulator keeps removing financial firms

New Zealand’s Financial Service Providers Register (FSPR) has recently published on its website a new deregistration notice, which features all the names of businesses and individuals which were removed from the register in December 2015 and January 2016.

As revealed by the announcement a total of 226 firms and individuals got removed from the register in the two- month period, with 90 removals in December and 136 removals in January. The increase in the number of deregistrations is evident, especially if one compares these numbers to the 66 businesses and individuals that were deregistered in November 2015.

New Zealand’s authorities proceeded in striking off all of these businesses and individuals from the FSPR, in accordance with section 18(1) of the Financial Service Providers (Registration and Dispute Resolution) Act of 2008, which provides that:

“Deregistration of financial service provider

(1) The Registrar must deregister a financial service provider after a notice period in accordance with sections 19 and 20, if the Registrar is satisfied that the provider—

(a) is no longer qualified to be registered in accordance with section 13; or

(aa) has failed to notify the Registrar of the name, business address, and membership number, as required by section 16(1)(ab); or

(b) is not in the business of providing a financial service (at any time after the expiry of 3 months after registration); or

(c) has been registered because of a false or misleading representation or omission; or

(d) has proffered an application fee or annual confirmation fee or levy that has subsequently been dishonoured, declined, or reversed.”

 

Both the FSPR registration process as well as the oversight of the pertinent watchdog in this jurisdiction, namely New Zealand’s Financial Markets Authority (FMA), which often issues warnings against unregistered and unregulated entities, ensure the safety and well being of the financial markets and the protection of clients deciding to engage in financial investment activities in the jurisdiction of New Zealand.  

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George Milios

George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.

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