CLSAP NZ Faces Additional Derivatives Licence Conditions

CLSA Premium New Zealand Limited (CLSAP NZ) has received additional terms and conditions regarding derivative issuer licence from the New Zealand Financial Markets Authority (FMA) due to audit and assurance obligations failure.

22 September 2020 | AtoZ Markets – CLSA Premium (formerly KVB Kunlun Financial Group) is an investment holding company. It provides leveraged Forex trading, cash dealing, securities trading service, etc. Established in 2010, its headquarter is in Hong Kong.

FMA Temporarily Banned CLSA Premium NZ From Offering Derivatives

FMA has imposed additional conditions on the derivative issuer licence of CLSAP NZ. Now, CLSAP NZ cannot offer or receive additional funds regarding retail investors' derivatives, except in certain limited circumstances. FMA is a government body in New Zealand responsible for regulating financial markets. FMA said:

"The conditions that the FMA has imposed allow CLSA Premium NZ to close out open positions with retail investors, or receive funds from retail investors to meet obligations (e.g. margin o,r collateral requirements) that the investor might have with CLSA Premium NZ."

FMA noted that the company does not meet some of its 2019 audit and assurance obligations. The regulator concerns that CLSAP NZ does not currently meet all of the eligibility criteria for issuing derivative issuer licences. CLSAP said this additional term would temporarily affect the business in New Zealand. But the company will meet the audit and assurance requirements and lift the conditions as soon as possible. CLSA Premium said:

"The above conditions will take effect from 22 September 2020 and will remain until the relevant, compliant audit, and assurance reports for 2019 are lodged, and the FMA is satisfied that the criteria for issuing a licence under the Act are met."

However, in June, New Zealand financial regulators accused CLSA Premium Ltd of committing multiple violations of anti-money laundering laws. FMA said CLSA Premium failed to report sufficient customers due to diligence, termination of business relationships, and suspicious transactions under the AML and CTF between 2015 and 2018.

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