Top FMA Forex Brokers
New Zealand has been the subject of numerous controversies due to the unprecedented number of broker scams, which ultimately damaged the nation’s reputation throughout the majority of the past decade. New Zealand was considered as a haven for financial scams due to the lack of any effective regulatory agency that was capable of dealing with financial malpractices. Although New Zealand had the Securities Commission that served as the primary regulatory watchdog, the organization was highly inconsistent in its regulatory process, which enabled companies to operate in the markets without any supervision. The financial crisis of 2008 also played a significant role in undermining the overall efficiency of the Securities Commission of New Zealand, which forced the NZ Government to scrap the agency entirely. New Zealand used to offer several attractive benefits for companies that wished to invest in the region, and this enabled Forex brokers from all quarters of the world to set up their base in New Zealand to target a global audience. However, the New Zealand Government got its act together and introduced FMA (Financial Markets Authority) in the year 2011 to put a stop to the growing number of broker scams in the country. FMA is now the primary regulatory authority of NZ that has clear-cut responsibilities to regulate and supervise all types of financial firms to prevent a repeat of its woeful past. FMA is built on a strict regulatory framework that issues several regulatory guidelines for financial companies to ensure that they operate in the best interests of the New Zealand economy.
How Are FMA Regulated Brokers Different From Its Predecessors?
FMA Forex brokers have evolved tremendously under the new FMA guidelines, and are now considered to be on par with a majority of the leading Forex brokers regulated by well-established regulatory agencies such as the ASIC and the FCA. The overall improvement in New Zealand’s regulatory guidelines is seen as an important step into reclaiming trust and confidence among investors who had lost millions during the Securities Commission Regime. The New Zealand parliament has allowed FMA free reign over its regulated members and the regulatory agency has the freedom to take any action against a company without fearing any consequences. FMA’s new regulations are aimed to regulate brokers by tracking their activities, and companies are required to submit regular financial statements, third party audit reports, and a detailed list of all policies that influence financial transactions between a company and its clients. The FMA investigates all matters of fraudulent activities and encourages investors to initiate complaints or tip-offs against an FMA regulated company, regardless of the magnitude of the crime. If the agency finds an FMA regulated broker to be guilty of any wrongdoings, the FMA is quick to impose substantial penalties and revoke their trading licenses, including banning them from operating in the country on a temporary or a permanent basis. Investors and even company employees can contact the FMA through multiple means such as hotline numbers, emails, fax, or through web contact forms. FMA also has a whistleblower program that guarantees the privacy of the individual who wishes to report about any company’s fraudulent activities. FMA is also proactive in monitoring the attitude of FMA Forex brokers towards its customers by routinely seeking feedback through customer surveys or indirect consumer interaction. Gaining invaluable customer feedback is vital to the FMA for regulating Forex brokers, which helps in deterring companies from deviating from the FMA’s stringent code of conduct. New Zealand has also given prior importance to satisfying international laws about anti-money laundering through its policies such as The Anti-Money Laundering and Countering Financing Terrorism Act of 2009, which has criminalized every aspect of money laundering and illegal third party payments. FMA audits the financial reports of all regulated companies to ensure that a broker or a financial firm conforms to existing anti-money laundering laws. In the case of financial irregularities, the FMA can not only suspend licenses and slap hefty fines, but the FMA can also initiate legal action against the firm by citing the company for civil and criminal misconduct.
What Happened To The Authentic FMA Forex Brokers Under The New Rule?
Regardless of the changes in rules and a massive shift from the complacent nature of the Securities Commission to the intuitive and direct approach from the FMA, various honest brokers were negatively affected by this approach. The New Zealand Government did not account for the long-lasting effects that the different regulatory reforms can have on genuine Forex brokers that indulged in sound and honest business practices. The new FMA regulations are entirely distinct from the outdated Securities Commission’s rules, which led to wide-scale outrage among existing financial companies. Several Forex brokers had their licenses revoked, and established businesses were banned from operating in the country. However, the severe criticism from existing businesses as a result of the regulatory reforms forced the Government to backtrack its stance and started incorporating all companies under the new and advanced framework.
Why Choosing FMA Forex Brokers Make Sense
FMA regulated brokers consider FMA’s guidelines to be more oriented towards the safety of the investors and the general consumer, rather than its member firms. Several brokers have publicly cited the FMA to be against the welfare of companies and member firms, which provides great reasons for investors to believe in the effectiveness of FMA as a credible and reliable regulatory authority. FMA’s strict stance against financial crimes and consumer abuse allows traders to invest their hard-earned money with a broker without being worried about the long-term reliability of a broker. The stringent regulations also act as a deterrent for brokers while indulging in financial malpractices, which is one of the top priorities and primary duties of a regulatory agency. FMA is not without controversies as it will take some time for New Zealand to recover from the negative reputation that it received during the economic crisis of 2008. Although the FMA has a highly efficient structure of rules in place to regulate brokers, the agency falls short of its mark by being unable to contain scams and malpractices from companies that have the sole intention of exploiting the country’s tarnished reputation. However, as a trader, you should make use of the FMA’s online resources and other avenues that provide information on a certain broker of your choice, before committing to deposit your money and start trading with them. A little bit of caution goes a long way into protecting you from financial crimes.