Japanese Ministry of Finance Warns Against IB and Affiliates of Unregulated Brokers


Japanese Ministry of Finance warns against IB and Affiliates of unregulated brokers, adding that IB and execution brokers should implement and maintain the necessary measures to guarantee the compliance with all the valid regulations. 

26 June, AtoZ Markets The Japanese Kanto finance bureau of the Ministry of Finance (MoF) has issued a warning on its official website. The authority has reminded the public to exercise caution when dealing with affiliates or introducing brokers of unregistered Forex companies. 

Japanese Ministry of Finance Warns Against IB and Affiliates of Unregulated Brokers

The MoF has cautioned the public against CLUB THE ZIPANGU. Reportedly, the entity operates in IB business. However, the Japanese regulator states that the firm does not have any authority to solicit investment from the public. 

The regulator has also stated that IB and execution brokers should implement and maintain the necessary measures to guarantee the compliance with all the valid regulations. The MoF has further explained that CLUB THE ZIPANGU has asked its clients to open an account with overseas brokers that have appeared in the warning list of authority even before. The IB firm is headed by Yasuhiko Tanaka. 

Some of the brokers that were promoted by CLUB THE ZIPANGU include such brands as FXDD Trading, Axiory Global Ltd, and Titan FX Limited.

The firms that appear on Kanto’s list might have registration in other jurisdictions. However, this does not mean that these entities can operate in Japan. In order to be eligible to do so, firms need to also obtain JFSA authorization to do business in Japan.

Financial Instruments and Exchange Act Registration is required

The abovementioned firms have either offered or promoted services online in Japan, while not being authorized to do so. Japanese clients of these firms are not granted the protections that are available to clients of firms that have proper license and regulation in the country. 

The Japanese regulator has also confirmed that registration under the Financial Instruments and Exchange Act is required even for overseas operators. They need to obtain license into to be able to offer financial instruments for Japanese investors or for transactions with them as counterparties. 

The regulator has highlighted that the information used in the warning list was obtained via solicitation materials and might be inaccurate. Additionally, investors are advised to check the Japanese Financial Services Authority (JFSA) website to check the fact of the company’s registration.

Think we missed something? Let us know in the comments section below. 

Leave a Reply

Your email address will not be published.