New Zealand Forex Broker License

New legislation entitled the Financial Markets Conduct Act (“FMCA”) has been passed in New Zealand that creates a totally new financial services licensing framework. It has major ramifications on what is required for forex brokerages and provides an opportunity to hold a world-class license that can provide a stamp of quality for investors that seek a high level of investor security confidence.

New Zealand Forex Broker License Key Features

  1. Minimum net tangible assets of the greater of $1,000,000 or 10% of average revenue
  2. Management team covering responsibilities including compliance, regulation, and risk management
  3. Appropriate standards for onboarding new clients
  4. Information on conflict of risk and dealing policies
  5. Standards for hedging internal risk and handling client margin levels
  6. Rules for segregation of client funds as well as proper record keeping of customer account information

New Zealand Forex Broker License Legal Requirements

New Zealand Forex Broker License Description
General
  • Corporate  vehicle permitted
NZ Company or Limited Partnership
  • Local physical office required
Yes
Share capital or equivalent
  • Minimum Net Tangible Assets
USD 1,000,000
Directors
  • Minimum number
2
  • Corporate directorship allowed
Yes
  • Local director required
Yes
Shareholders
  • Minimum number
2
  • Corporate shareholders allowed
Yes
  • Local  shareholders required
No
Service Providers Required
  • Company Secretary
No

New Zealand Forex Broker License Tax Treatment

All income derived outside New Zealand is tax exempt.

New Zealand Forex Broker License Duration to Set Up

Around 5 months

Distinctive Benefits of Licence

  1. Finely tuned regulatory regime that provides confidence in the quality of supervision while ensuring that the demands of the investment community can be met.
  2. All income derived outside New Zealand is tax exempt.

Why US (Key Strengths)

  1. We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances.
  2. Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
  3. We are very hands on in the post filing period checking with the regulator and service providers and updating you regularly.
  4. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
  5. We have a full in-house compliance support for all compliance requirements with the regulator and service providers