New Zealand gets taste of Forex Fraud

New Zealand has positioned itself as an alternative destination for 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 brokers looking to market themselves as regulated brokers. A new report has shown that a local foreign exchange trader has been charged with fraud for allegedly causing 59 investors to lose around $1.5 million.

The Serious Fraud Office (SFO) has charged Christopher John Collecutt, 57, with theft by person in special relationship, obtaining by deception or causing loss by deception, and false statement by promoter.

Collecutt traded foreign exchange on behalf of 73 investors, located both in New Zealand and overseas, the SFO said today in a statement.

It is alleged that figures in weekly investment reports emailed to investors from late 2008 onwards were false; that commission income was calculated on false profits; and that investor funds were used for personal use.

The New Zealand dollar is currently trading at 1.259 against the greenback.

Collecutt, who used the trading name CFX, predominantly traded in US and Australian Dollars and Japanese Yen.

The SFO was alerted to the case in August last year and immediately began investigating.

"Many of Mr Collecutt's investors were family and friends, and this highlights the fact that a personal connection with the promoter of an investment opportunity is no substitute for careful research into the risks associated with any type of investment," SFO chief executive Adam Feeley said.

Brokers can get Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term from as little as $30,000.

Forexmagnates team will be writing a detailed report on regulations for Forex brokers in New Zealand in the next quarterly report.