NZ may have a good reputation as a clean and green country but when it comes to Financial regulations to protect Client fund IT is nothing like SIPC in USA or FSA in Uk
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To clarify the role of Financial Services Complaints Limited (“FSCL”), FSCL is the operator of an independent complaints scheme, not an insurance scheme. While FSCL has the ability to make monetary awards, it is the broker who must pay that amount to the complainant. As such, the value of any award is, in a practical sense, subject to the broker’s ability to pay, and may be of limited value where the broker is already in financial difficulties at the time the complaint is made.
Registration as a financial service provider does not infer any guarantee of the broker’s obligations to its clients.
Like the Australian position, if a broker collapses and there is a deficiency in its client account, clients may loose money. Where the broker’s client account is regulated, regular audits and supervision of the broker are designed to minimise the likelihood of a deficiency existing in the client account.
Divisa Capital LP is not authorised to deal in futures contracts. As such, its client account is not regulated under the Futures Industry (Client Funds) Regulations 1990.
We hope this clarifies the position with respect to this company for you.
Regards
Hayden
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Hayden Best | Solicitor | Financial Markets Authority
T: + 64 4 495 1681 | E:
[email protected]
Level 8, Unisys House, 56 The Terrace, Wellington
PO Box 1179, Wellington 6140, New Zealand
www.fma.govt.nz
