Are Regulatory Changes on the Horizon for Saint Vincent & the Grenadines?

When thinking of foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) trading, Saint Vincent and the Grenadines is not necessarily the first country that comes to mind. However, even though the island nation’s FX industry is small, there might be some big changes coming in terms of regulation.

In recent months, rumours have been growing that the local regulator in the country, the Financial Services Authority (FSA) will be implementing its own set of regulations, which at this point, similar to the situation in the Marshall Islands, has largely allowed brokers to self-regulate themselves.

As can be imagined, the lack of regulation has seen a number of bad actors set up shop within the country and tarnish the reputation of Saint Vincent and the Grenadines, which has prompted the government to act.

Tal Itzhak Ron, Chairman and CEO at legal firm Tal Ron, Drihem & Co. and Genia Gurevitz, who heads the Banking and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term Services at Tal Ron, Drihem & Co, have confirmed to Finance Magnates that the FSA is planning on implementing new regulations.

Changes are coming for Saint Vincent & the Grenadines

In particular, Tal Itzhak Ron and Genia Gurevitz, who help companies secure financial licences and banking facilities in Europe and offshore, told Finance Magnates that their office based in Saint Vincent and the Grenadines has confirmed they have been made aware that changes are coming for the country.

According to Ron and Gurevitz, the FSA is planning on establishing its own financial licence, which companies wanting to offer financial services from the island nation will need to secure before starting their operations in the country.

Therefore, with the introduction of the licence, companies operating within the country without authorisation will no longer be permitted. Currently, it is not clear when this regulation will be implemented, but it is expected to occur later this year.

However, a representative from the regulator has since reached out to Finance Magnates, clarifying that it will be reviewing its strategy as it relates to forex IBCs but there are no immediate plans to put regulations in place for entities conducting forex activities from this jurisdiction.

As Finance Magnates recently reported, the local regulator in The Bahamas, introduced a suite of new regulation including leverage caps, banning binary options and significantly increasing the fees for securing and maintaining a CFD licence in the country.