Do not invest more money than you can afford to lose.
New Zealand’s business ministry issued on Wednesday a notice about the removal offorex broekrs Solidary Markets Nz Ltd., Sumo Forex Ltd., and Tigerwit Prime Ltd. together with another 50 entities and individuals, from the Financial Service Providers Register (FSPR) of investment service providers authorized to operate in the country.
The decision for the deregistration of Solidary Markets was adopted on 11 March, 2016, while the other two brokers were removed from the FSPR on 28 April. No reason was provided.
If a company is included in the FSPR, it is not necessarily licensed or regulated in New Zealand. However, if it wants to provide financial services in the country, it ir required to be registered. The FSPR is a searchable online register of people, businesses, and organizations that offer financial services in New Zealand. It was created by the government as part of a wider strategy to make the financial services sector more accountable and transparent with the aim to provide public access to information about financial service companies in New Zealand.
Usually, companies get deregistered if they do not qualify with the register’s requirements, if they does not provide financial services or are not active in the local markets or if they have failed to provide their name, business address, and membership number, as required. Companies which improperly appear to be associated with New Zealand’s regulatory bodies and to be regulated by them, or those which provide misleading representations.
In March, New Zealand’s Financial Markets Authority (FMA) warned that Tigerwit Prime falsely claims to be licensed, supervised and independently audited by New Zealand government agencies. In addition, it falsely states that as a result of the FMA supervision, its clients’ funds are safe and secure. The broker’s website provides no additional information regarding authorization.
Earlier this year, the regulatory bodies in several countries, including Japan and Canada’s Ontario, issued warnings against New Zealand-based Sumo Forex for providing financial services without registration. The broker was included into the FSPRA in November 2014.
Solidary Markets NZ, operating as Solidary Markets FX, does not fall under the regulation of any other watchdog, other than that of New Zealand.
Source: Ministry of Business Innovation and Employment
