New Zealand Broker Loses License After Five-Year Battle With Regulator
Former Forex Broker Accused of Misleading Conduct
The Financial Markets Authority (FMA) in New Zealand has canceled the license of a former forex broker, ending a five-year legal battle between the two parties.
Misleading or Deceptive Conduct
In a statement, the FMA said that the broker had engaged in "misleading or deceptive conduct" and had failed to comply with anti-money laundering laws. The regulator also accused the broker of making false or misleading statements to clients and failing to keep proper records.
Unlicensed Operation
The FMA said that the broker had been operating without a license since March 2018. During this time, the broker had continued to offer forex trading services to New Zealand residents, despite being prohibited from doing so.
Implications for Investors
The FMA's decision to cancel the broker's license means that the broker is no longer able to operate in New Zealand. Investors who have been dealing with the broker are advised to seek legal advice.
Background of the Case
The FMA first began investigating the broker in 2017. In 2018, the regulator imposed a six-month suspension on the broker's license. The broker appealed the suspension, but the High Court upheld the FMA's decision in 2019.
Ongoing Investigation
The FMA said that its investigation into the broker is ongoing. The regulator said that it is considering taking further enforcement action against the broker and its directors.
Lessons Learned
The case highlights the importance of investors being aware of the risks of dealing with unlicensed brokers. Investors should only deal with brokers who are licensed by a reputable regulatory authority.
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