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#1 09-09-2019 09:35:17

johnedward
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133 brokers have registered in Vanuatu since last year

133 brokers have registered in Vanuatu since last year


133 brokers have registered in Vanuatu since the beginning of last year. The soaring registrations shows how this small nation, which until recently had very low start-up costs and virtually no regulatory restrictions, has become popular among retail investors.

Brokers started arriving there three years ago. Three brokers were registered there in 2016, followed by 11 more the following year.

Just last month, four new brokers popped up. This includes ACY Capital (an Australian company regulated in its homeland), but also less scrupulous companies.

Last week, for example, a company called Capital Market Solutions was registered. This could be linked to another company called Capital Market Solutions which is registered in Bosnia and Herzegovina.

This company, which seems to belong to Israeli citizen Victor Gankin, operated call centers for a number of unregulated brokers. Almost all of these brokers have been accused of fraud.

In fact, a sizeable proportion of Vanuatu firms appear to have links to Israeli firms or individuals. However, this is difficult to confirm, as Vanuatu does not require business owners to publish their names.

Regardless of the nationality of the business owners, the move to Vanuatu illustrates a growing problem in the trading industry.

With the harsh regulatory restrictions implemented by the ESMA in Europe, brokers are moving towards more flexible jurisdictions to conduct business.

Of course, this means that they are placed in the same regulatory basket as some companies that have no interest in providing honest service to their customers.

And as Australia is now preparing to introduce its own leverage-based regulations, we are likely to see more brokers take that 4-hour flight from Australia to Vanuatu.

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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