RECOMMENDED FOREX BROKERS
Do not invest more money than you can afford to lose.
New Zealand’s Financial Markets Authority (FMA), issued on Monday a warning notice against unregistered contracts for difference (CFDs) broker Fidelis International Trading.
The regulator said it has received complaints from overseas clients of the broker in relation to its inability to repay them in accordance with their instructions. The broker claims to be based in New Zealand but it has not been registered as a finiancial service provider in the country and does not fall under the regulation of any local authority.
On its website, Fidelis International Trading also provides office addresses in several other locations – Malaysia, Sweden and the Bahamas. However, it does not provide any information regarding registration, authorization, or licensing.
The broker provides trading in CDFs on stocks, bonds, commodities, indices, and others, as well as precious metals and energy futures.
Under the New Zealand legislation, entities are forbidden to offer financial services in the country if they have not been registered in the Financial Service Providers Register (FSPR). Even if they have any required licenses or authorization, they need to be entered into the register if they want to operate in the country. This rule applies for both entities and individuals who work in New Zealand, as well as those who are based there.
Access to the register is available to the public through the website of the country’s business ministry and anyone can see which entities and individuals it includes.
The FMA warns investors to be cautious and not to trust their funds with unregistered investment service providers.