FOREX companies in SVG on notice: FSA imposes License Requirements

FOREX Trading and Brokerage Companies in SVG face tightened License Requirements

The Financial Services Authority (FSA) has taken action in response to the numerous complaints and allegations of fraud and scams against SVG-registered Business Companies (BCs) and Limited Liability Companies (LLCs) involved in FOREX trading or brokerage, by issuing a formal notice giving a tight deadline to submit requisite licenses.

Therefore, to ensure that these businesses are operating and performing fairly and transparently, the FSA has set a deadline of March 10, 2023, for these companies to submit legitimate notarized, apostilled, or certified copies of the necessary licenses or approvals from the jurisdiction where they carry out their business activities.

Here is what needs to be known:

• If a company is already involved in FOREX trading or brokerage, the FSA requires it to provide certified, legitimate copies of any licenses obtained from the jurisdiction where the business activities will be conducted.
• If a company is already registered in SVG and involved in FOREX, the FSA requires it to provide the licenses until March 10, 2023. Note that there will not be filing fees for these filings.

Exceptionally, if a FOREX business does not require licenses to operate in a specific jurisdiction, a confirmation letter can be presented to the FSA. Consider that the abovementioned letter must be issued by a competent authority stipulating that no license is necessary for those activities in that location, and no legal opinions from lawyers would be accepted.

Additionally, if a company has valid reasons to need more time to comply with the new requirement, it can apply for an extension to the FSA before the established deadline, extensions will be granted on a case-by-case basis.

When involved in FOREX in any way, make sure you are following these requirements. The FSA will impose severe sanctions against companies that do not comply with the rules.

For further information, visit the FSA memorandum or contact us directly.