SVG licensing situation: what TFB can offer
Author: Ivan Egorov
The last few weeks had the broker world buzzing.
The Saint Vincent and the Grenadines (SVG) regulator, Financial Services Authority (FSA), announced a change to forex business requirements. Effective March 10, all potential and existing WL brokers based in SVG will only be able to operate if they have provided licenses from all jurisdictions where their business will be conducted. To support the initiative, MetaTrader has initiated KYC with their clients to ensure they meet the regulator’s demand and can continue operations.
The regulator’s initiative was in response to a growing number of complaints of misconduct among local brokerages. So, while it is a step in the right direction towards transparent and secure markets for us all, it is creating temporary issues for existing SVG businesses.
Who is affected by the change?
Brokerages affected by the new regulation are registered in Saint Vincent and the Grenadines and operate in other countries without licenses in those markets. For example, if a brokerage is based in SVG but works with clients in the UK without an FCA license.
What can be done?
The best solution is to get the proper brokerage licenses, pass the KYC by MetaQuotes, and continue with business as usual.
However, we realise that getting licensed in time to meet the deadline may be challenging for several reasons. At TFB, we have several ideas on how brokers can approach this situation.
- If the company has a subsidiary or a parent company that currently possesses an FX/CFD license, it would be possible to reorganise the company structure to meet the new requirements.
- Another good option is to register a company in Mauritius or Seychelles. The whole registration process costs more than in SVG and takes 2 to 6 months to complete; however, it can help brokers save their business and continue operating.
- Switch to alternative trading platforms. At TFB, we partner with cTrader and Match-Trader in addition to MetaTrader, so brokers can always choose the trading platform they want to work with.
In addition to the options above, TFB has trusted partners who can assist with ready-made solutions. For more information, please email us at email@example.com.
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