Find Trusted FMA Brokers
The Financial Markets Authority (FMA) is the regulatory authority for financial markets as well as its participants in New Zealand. During the 2006 to 2010 period, the Securities Commission Of New Zealand, which was the predecessor to the FMA, received a lot of criticism due to the failure of numerous financial companies and the subsequent loss of client funds. The Securities Commission of New Zealand was also unable to enforce strict regulations, which ultimately led to the breakdown of the New Zealand economy, played in part by the global financial crisis.
The FMA was formed in 2011 after the New Zealand parliament passed the Financial Markets Bill to create a new regulatory agency to oversee regulations and supervision of financial markets to restore consumer confidence and to bring back investors to the country. According to the new Bill, the FMA has the complete power to license, regulate, supervise, and revoke licenses for all financial firms and to ensure that the integrity and transparency of the financial markets are kept intact. The regulatory framework for the FMA is currently outlined by the Financial Markets Conduct Act of 2013.
Can FMA Regulated Brokers Be Trusted?
Several large-scale financial meltdowns and broker scams have rendered a bad image to New Zealand’s overall economy and the effectiveness of its regulatory governance, which had forced the New Zealand authorities to reform its regulatory guidelines to ensure that a repeat of the scenario never happens again in the future. The FMA was introduced by taking into account several aspects of an international code of conduct that all regulated financial companies must adhere to, and the same rules apply to Forex brokers that are regulated by the FMA.
The FMA has become more proactive in its efforts on fighting financial crimes by enforcing its rules on its member companies. The FMA constantly monitors all regulated firms and supervises their activities by issuing guidance and policy updates on a periodic basis. Therefore, all brokers regulated by the FMA are currently monitored frequently to ensure that they are safe, secure, and transparent in their dealings with the consumer. The regulatory protocols were reformed to such an extent that even genuine brokers who had legitimate business transactions were affected and ultimately banned from carrying out businesses under the FMA license.
Top Favorite FMA Regulated Forex Brokers In 2018
How Were Genuine FMA Forex Brokers Affected During The Transition?
Several brokers and financial companies had registered their businesses in New Zealand under the previous Securities Commission Of New Zealand guidelines, and hence, their licenses were issued according to the then prevalent regulations. However, the transition from Securities Commission of New Zealand to the FMA did not account for existing companies that were already carrying out genuine operations in New Zealand, and hence, a majority of these companies were banned or deregulated from the FMA.
This created an uproar among standing businesses, and the FMA was forced to reconsider its stance by reforming its regulatory framework to issue licenses to all previous companies. However, under the new reforms, all companies must reform its operational procedures to satisfy the new regulations, a failure of which can attract hefty fines and permanent ban on licenses.
How Do I Approach FMA Regulated Brokers For Complaints?
The primary aim of the FMA is to restore investor confidence by working with the consumer to sustain the financial markets through honesty and transparency. Therefore, the FMA is dedicated to the consumer that allows investors to contact the FMA directly in case of any complaints or tip-offs. The FMA offers multiple channels for consumers to get in touch with the FMA through helpline numbers, emails, and web contact forms.
The FMA conducts consumer surveys and has formed a consumer advisory network that works on incorporating consumer feedback while creating regulatory guidelines for licensing financial companies in the country. These initiatives are often seen as FMA’s answer to upholding the integrity of the financial markets, as they constantly seek feedback from consumers on their experiences with FMA member companies.
FMA’s Commitment Towards The Future
FMA is committed to consumer education by enabling the general public to browse through their online resources and gain more information about the financial markets. FMA inspires investors to make calculative decisions based upon extensive research and being diligent in their approach while dealing with financial entities that are regulated with the FMA. FMA promises investors of swift action against those who deviate from the rigorous code of conduct that all member companies are required to adhere to.
FMA is also involved in formulating strict anti-money laundering policies through it Anti-Money Laundering and Countering Financing of Terrorism Act of 2009. All FMA member organizations are required to comply with the act and the FMA will not deviate from its stand of protecting the overall interests of the nation. FMA conducts regular audits of organizations to ensure that all financial transactions are carried out in line with FMA’s guidelines.