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JP Markets FSP license suspended - funny story

Amandeep Sonewane | Mar. 26, 2019
JP Markets FSP license suspended - funny story

March 26, 2019 | AtoZ Markets - On the 25th of March, JP Markets FSP license has been temporarily suspended without any prior notice by the regulatory body, according to the broker. Founded in 2016, the South Africa based forex broker, JP Markets is licensed and regulated by the Financial Services Board, South Africa under FSP no: 46855. But what is this issue about?

JP Markets FSP license suspended

According to JP Markets' BD manager, Phumulani Nkosinathi Simamane, there is no reason behind the temporary suspension. It might rather be an embarrassing situation as the forex broker forgot to pay levies on time. When the company's FSP number was registered, Justin (the founder of the JP Markets) was using a web address, however they no longer use this domain. After numerous email account updates to his address, the FSP regulator failed to update their system. So, they did not receive any warnings or notice from the regulator. While this could have easily been avoided if the email address had been updated. The FX broker took the responsibility since they should have followed up and paid on time.

In the interests of transparency, the FX broker has attached the notice clearly outlining the reasons for suspension. Moreover, the FX broker had paid the outstanding amount 2 days before FSP suspended the license, and are in process to have this unfortunate oversight remedied immediately.

Furthermore, under the section 3  of the Grounds of Suspension and under section 4 the FSP confirms the reasons as missing to pay the necessary payments. Simply, JP Markets did not pay in time despite paying 2 days prior to the suspension.

However, the brokerage firm has been apologizing for any concern that it may have caused and assures that the investor's funds are safe and secure. It is business as usual as the grounds for suspension have already been remedied, we are just waiting for the FCSA to update the suspension status on the website.

JP Markets South Africa interview with AtoZMarkets 

AtoZMarkets Team: "Have you made any changes to your protocols in order to avoid such issues in the future? If yes, what?"

JP Markets Management: Unfortunately, there isn’t an amazing story behind it. The TLDNR version is that the FSCA was sending reminders to an old email address, and we were not vigilant enough to follow up with them and the licensing dates. The company has grown exponentially in both the amount of clients we have as well as the various services we have on offer, and we dropped the ball.

In order to stop such a mistake from happening again, several people have been tasked to keep track of payments like these so even if one is not available there will be others involved. As well as digital reminders hosted in the cloud so even if we update our servers or lose everything locally the reminders will come through. As well as ensuring that the FSCA updates their records correctly for any future communication, and the email address to be monitored by more than just one senior company employee.

AtoZMarkets Team: "Since you already remedied this case, how long do you think that regulator will keep the suspension?"

JP Markets Management: While the ramifications of our FSP license being suspended can be quite severe, the cause was merely a simple oversight on our side as well as poor communication from the FSCA. While payment for the license was made late, it was still done prior to the suspension of the license. Which is why we are hoping for them to update the website as quickly as possible.

We expect them to update their website any day now. And we would like our clients to know that we do accept our share of the responsibility for this oversight and have already made adjustments to ensure this never happens again.

About JP Markets

JP Markets offers trading in around 30 forex pairs, stock indices, oil, gold and OTHER CFDs on the widely used MetaTrader 4 platform. The company behind the brand, JP Markets SA (Pty) Ltd. is licensed and regulated by the Financial Services Board (FSB), South Africa, FSP 46855. The broker also has a presence in Kenya, Pakistan, and Bangladesh.

Lately, South Africa is seen as a financial market with great potential, as it is one of the most developed countries in Africa. FSB is in charge of the licensing process and supervision of forex brokerages in the country. Besides, the South African regulator has enforcement powers to deal with breaches through the enforcement committee and runs a customer complaints service, the Office of the Ombud for Financial Services Providers.

JP Markets is not an approved Forex Broker. See the list of reliable Forex brokers in our directory section.

LATEST UPDATE: JP Markets FSP license suspension has been lifted on 26 March 2019, a day after the suspension by the regulator.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.