In connection with the changes made to licensing in Vanuatu. The following changes must be implemented to obtain a forex broker license / renew a forex broker license in Vanuatu:
APPLICATIONS FOR FINANCIAL LICENSES FOR VANUATU
All applications for a Principal License must be submitted with an application for a Representative License.
It is no longer possible to claim an exclusive license.
COMPANY TRANSFER OR FINANCIAL LICENSE FOR VANUATU
VFSC rules state that a licensee is prohibited from selling or transferring a financial dealer license.
If the shares of a forex company in Vanuatu are transferred to a new owner, the main license of the forex broker will be automatically canceled. The new owner will have to apply for a new Financial License (Representative License in his own name and Principal License in the name of the company).
FOREX BROKER FINANCIAL LICENSE WHICH EXPIRES BY DECEMBER 16
For a company holding a securities license valid until October 30, 2017 (for example), renewal of the license must be paid upon renewal, however documentation must be provided (that is, other information must be provided within 6 months) To VFSC by December 16, 2017.
FOREX BROKER FINANCIAL STATEMENTS
The Principal Licensee submits to the Commissioner a quarterly report with updated information, which should include:
(A) the number of investors and the amount invested;
(B) the number of products offered to investors with a detailed description of the number of products offered;
(C) Details of which jurisdiction was offered;
(D) Details of the investor screening process and criteria used;
E) number of failures and reasons for failure;
(F) Updated information on registered agents and dealership details;
(G) Updated information on shareholders and beneficial owners; and
(H) Report any complaints received from investors.
Quarterly financial statements are published 3 times a month from the date of the financial license. The date is different for each specific company.
For companies that have already been issued a financial license, it is necessary to provide information for the last 6 months as soon as possible in order to get a true and fair picture of the company’s activities in relation to the Dealer’s business.
DOCUMENTATION REQUIRED FOR APPLICATIONS UNDER THE FINANCIAL LICENSE
The applicant for the Principal license must provide the following documentation and information under the forex broker license:
(A) An institution of 5 million VATU must be filed with the VFSC and addressed to the “Commissioner”.
(B) Application in the prescribed form
(C) Letter to the bank as proof of the source of funds for the payment of the Capital
(D) Business plan outline
(E) AML & CTF Registration Form
(F) AML & CTF Compliance Officer Appointment Form
(G) AML and CTF Compliance Report Form
(H) AML Guide
ADDITIONAL INFORMATION AND DOCUMENTS FOR OBTAINING A FOREX BROKER LICENSE
(I) If the applicant for a forex broker license is a company, a certified copy of the registration certificate and license of the company in the country of its registration is required.
(J) If the applicant for a forex broker license is an individual, certified copies of diplomas, CVs and two independent references to relevant experience in securities and investments in fund management are required;
K) a statement by the director of the forex broker company, which sets out information on the financial position, working capital, contingent liabilities and insurance, including professional indemnity, indicating the coverage of the appointed representative and other officers of the applicant;
A statement confirming the company’s financial condition, assets and contingent liabilities. Professional indemnity coverage is a separate document that needs to be prepared.
(L) If the applicant for a forex broker license has worked for more than twelve (12) months prior to the date of the application for the license, the applicant must submit a financial statement with the applicant’s most recent income statement and balance sheet that has been audited by an independent auditor and certified by a public notary or by agreement with the Commissioner, this is equivalent;
M) A statement that clearly specifies the activities of the forex broker that must be licensed and the manner or environment in which the applicant proposes to conduct business (including details of the product that the applicant will hold as collateral;
(N) Details of the applicant’s internal organization, internal control and corporate governance, including details of the retention of current books and records detailing the receipt of investments, how they are conducted and reviewed, and a description of the mechanisms used to withdraw and / or redeem Investment.
O) a certified independent risk assessment report that highlights compliance with anti-money laundering and anti-terrorism obligations.
(P) disclosure of business related to online business or e-commerce and clear display of licensee information; The VFSC does not expect the licensor to have any previous internet or e-commerce experience. It is an internet oriented business.
The VFSC’s point of view is that the lack of such experience in internet and e-commerce is a major concern as it appears that the licensor will be looking for someone who is an expert in internet business, which is worrying as this is how it evolves. fraud.
Q) the decision of the directors appointing a representative of the principal licensee.
(R) A statement by the applicant and the directors. They are unaware of any matter that could reasonably cause the Commissioner to doubt that he and his representative have the competence, good faith or financial resources to conduct business in accordance with the Law.
An applicant for a Vanuatu representative forex broker license must contain the following supporting documents:
(S) An application for a representative’s license made under section 4 (1 (b) of the Act is submitted to the Commissioner.
(T) Certified Copies of Diplomas, Curriculum Vitae showing relevant experience in fund management, securities and investments.
(U) Certified copies of two independent links showing at least three years of professional experience, supporting biographical information.
(V) Details of the electronic and telephone contact information of company representatives to confirm professional qualifications and carry out the relevant experience mentioned above.
(W) Proof of residence of the applicant for a forex broker license.
(X) A claim by the applicant that he / she is a suitable and appropriate person and is not aware of any matter that could reasonably cause the Commissioner to doubt that he / she and the Principal have competence, good faith or financial resources, to be able to conduct business in accordance with the Law.
AWARENESS ABOUT THE SOURCE OF FUNDS FOR PAYMENT OF FOREX BROKER CAPITAL
A letter from the Bank confirming the status and liquidity of the licensee is usually accepted as a genuine form of confirmation of the source of funds.
Capital in this context means the payment of the contribution and funds required to set the financial business in motion.
If customers cannot provide a bank statement / letter, then this is the reason for refusal to issue a license.
FINANCING LICENSES RENEWALS – LICENSES ARE ALREADY EXPIRED OR EXPIRING IN LESS THAN A MONTH.
(1) All applications for renewal of the license period shall be submitted to the Commissioner one month before the date of issue of the license.
(2) All licensees must also submit a report describing the activities carried out during the term of the license, which must include:
(A) a detailed report on the number of investors who have invested funds in a forex broker;
(B) a detailed account of the product invested and the jurisdiction in which the investment was made;
(C) a detailed report on the withdrawals of funds by investors and the reasons for withdrawing funds from the forex broker;
D) a comprehensive report on complaints received by investors and responses to these complaints;
(E) a financial statement showing the total turnover made by the applicant during the license period;
(3) The financial report must be prepared by an independent auditor and submitted 3 months after the date of issue / renewal of the license in accordance with International Accounting Standards or another standard as agreed with the Commissioner.
(4) All applications for renewal of the license period that previously paid up VT 200,000 capital must pay the remainder of VT 4,800,000 to offset the balance of VT 5,000,000 as a deposit under the new license requirements.
IF THE FOREX BROKER LICENSE IS EXPIRED OR EXPIRES IN LESS THAN A MONTH, WHAT IS THE PROCEDURE THAT SHOULD BE APPLIED?
The VFSC suggests that since we are still moving from the old law to the amendments we should simply apply for an extension and the VFSC dates the financial licenses to reflect the previous license dates.
However, the other requirements listed above are applicable, including capital payments.
PAYMENT OF FOREX BROKER DEPOSIT
The 5 million VATU account must be filed with the VFSC and addressed to the “Commissioner”.
We usually pay VFSC through verification as VFSC needs to get the exact amount in VATU and they will issue a receipt as soon as the application is collected.
For payment made by transfer, we only have a bank statement for a USD account (not applicable for a financial license application as the duty and deposit must be paid in VATU) and the main problem is that VFSC usually takes 2-3 weeks for the issuance of receipts for payment upon transfer.
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