New Zealand’s FMA blacklisted unregulated forex broker MYfintec
The Financial Markets Authority (FMA) of New Zealand, the government agency responsible for financial regulation, have issued a warning against FX broker MYfintec. The regulator noted that MYfintec is not registered on the Financial Service Providers Register nor authorized as a financial adviser and is therefore not permitted to provide these financial services to New Zealand residents.
The Financial Markets Authority (FMA) plays a critical role in regulating capital markets and financial services in New Zealand. It is the New Zealand government agency responsible for enforcing securities, financial reporting, and company law as they apply to financial services and securities markets.
Let’s take a closer look at the broker itself. MyFintec offers trading Forex, CFDs on indices, stocks, commodities, and cryptocurrencies. The company is owned and operated by an offshore-based company Kin Ltd. It claims to be registered in the Marshall Islands. Those brokers registered offshore are not considered as reliable ones, because they are basically are not overseen by any authority.
In addition, the official notice of the FMA states that the regulator is concerned that MYfintec has the hallmarks of a scam, including withholding client funds, the pressure to invest more before being able to withdraw funds, and bank accounts that do not match the company name.
We always advise traders to avoid dealing with unregulated offshore-based forex brokers like MYfintec, as most of them are involved in investment scams. There are a number of properly licensed brokers to choose from, like the ones regulated by the Financial Conduct Authority or the Australian Securities and Investment Commission.
You can read our review on this broker here.