New Zealand Forex Brokers shuts down, according to the local New Zealand online reports. The Forex Brokers (it is the name of the entity) has over $1 million client funds which is to be paid.
12 April, AtoZForex – New Zealand based Forex Brokers has reportedly shut down its operations due to liquidation. Moreover, the local New Zealand news reported that the broker has left a debt that accounts for more than $1 million in clients’ losses.
New Zealand Forex Brokers shuts down
New Zealand local media reports that the entity under the name of 'Forex Brokers' has collapsed. Also, the company has reportedly left a number of its customers owed more than $1 million. After the entity has shut down its operations, shareholders of Forex Brokers have been concerned with the liquidation process. PKF Corporate Recovery & Insolvency has been assigned as Forex Brokers' liquidators. PKF Corporate Recovery & Insolvency have just started the initial reporting, however there are already a number of requests on liquidation process as well as the state of the client funds.
One of the liquidators, Christopher McCullagh has stated that he has been appointed by the shareholders just recently. He said that since the appointment already a lot of people have contacted him. He also stated that the amount owed by Forex Brokers was "certainly in excess of a million". Moreover, Mr. McCullagh has cautioned that the firm has insufficient funds to address clients’ claims:
“It would be fair to say there’ll be a significant shortfall to creditors.”
Furthermore, Mr. McCullagh stressed that the creditors of Forex Brokers are very different people. Some of them are commercial operators and some are just people transferring savings overseas. In addition to the aforementioned, he added that some of the creditors had a long relationship with the brokerage:
"One said she'd used the firm for 17 years: This seems to be a genuine failure, but we need to do some investigation to determine what happened to the funds.”
What happened to Forex Brokers?
Forex Brokers was not a new entity. They had their main office in Auckland, in the Dingwall Building in the city’s Queen Street. The Forex Brokers firm has been operating in the markets since 1995. The firm has been offering a wide range of products. Forex Brokers’ portfolio included spot Forex transactions, offshore bank drafts, and telegraphic transfers.
The issues inside the firm started to appear just recently. Once, company’s transfer to China did not go through. Starting from this point, Forex Brokers has been experiencing a series of troubles. Prior to this moment, the brokerage has been known as a reliable firm.
Moreover, as New Zealand Forex Brokers shuts down, their customers have already started filing complaints with New Zealand’s Financial Market Authority (FMA), the responsible financial conduct regulator and an independent Crown entity.
A Financial Market Authority (FMA) spokesperson commented that the FMA has previously received three complaints about the Forex Brokers. Yet, the firm continued to offer spot Forex transactions that did not fall under FMA’s regulation. Finally, as New Zealand Forex Brokers shuts down, the official website of the firm - http://www.forexbrokers.co.nz/ - is also down.
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