

The High Court at Auckland has confirmed the decision of the New Zealand financial regulatory body, the Financial Markets Authority (FMA), to deregister forex trading company Excelsior Markets since it does not operate in the country, local business media National Business Review reported, citing business newswire Business Desk. If registered in New Zealand, the broker gives the false impression that it is regulated by the country’s laws, according to the court.
In May this year the FMA removed Excelsior Markets from the Financial Service Providers Register (FSPR), after which the broker took the regulator’s decision to court in September.
The High Court found the financial watchdog’s decision justified because the broker provides “most, if not all” of its financial services outside New Zealand and thus its activities are not subject to regulation in the country.
“In my view, if the FMA concluded Excelsior’s financial services were being provided almost wholly outside New Zealand, that could provide a sufficient basis for the FMA to conclude that there could be a misrepresentation as to the extent to which those services were regulated in New Zealand,” Justice Gerald Nation, who took the case, was quoted as saying.
The FMA often delists from the FSPR companies that are not active in the New Zealand markets and that it finds inappropriate to keep in the register. One reason for removing companies is in cases where they try to improperly benefit from being associated with New Zealand regulatory bodies and misleadingly pretend to be regulated by them.
The financial watchdog ordered the deregistration of 28 offshore companies, Excelsior Markets included, in fiscal year 2015, ended 30 June, 2015.
Excelsior Markets is a unit of UAE-based Excelsior International, which is owned by a Pakistani national, National Business Review said. It provides forex trading services, mainly in Sri Lanka, using a UK-based platform.
Source: National Business Review