FMA ( The Financial Markets Authority ) in New Zealand’s has declared that businesses selling short-duration derivatives will need to be licensed. The products, which include binary options and contracts-for-difference, pose potential risks to traders, leading the FMA to introduce the legislation. The FMA has said it has received a “steady volume” of complaints about short-term forex trading and other similar products. The FMA 's director of regulation, Sophie Gerber , commented: " About 40% of the complaints we receive are about unlicensed derivatives issuers, and a common theme is that people have difficulty in getting their money back."
The Financial Markets Authority (FMA) in New Zealand has declared that businesses selling short-duration derivatives will need to be licensed. The products, which include binary options and contracts-for-difference, pose potential risks to traders, leading the FMA to introduce the legislation. The FMA has said it has received a “steady volume” of complaints about short-term forex trading and other similar products. The FMA's director of regulation, Liam Mason, commented: "About 40% of the complaints we receive are about unlicensed derivatives issuers, and a common theme is that people have difficulty in getting their money back."