International brokers looking to establish a presence in the Asia-Pacific region are now facing yet another hurdle from regulators. New Zealand’s Financial Markets Authority (FMA) has announced that businesses selling short-duration derivatives, such as binary options and contracts-for-difference (CFD), will need to be licensed in the country.
The regulator says that it has been reviewing these products due to potential risks to traders and held discussions with the sector in the process of coming to its decision.
Liam Mason, FMA Director of Regulation, said: “We have been monitoring developments in the market since the introduction of licensing for derivatives issuers. We have also been receiving a steady volume of complaints about short-term FX trading and other derivatives products.”
From December 2017, any company marketing instruments to New Zealanders that settle within 3 days, whether they are based there or abroad, will require a licence.
Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.