Rockfort Markets has been stripped of its derivative issuer license.
High Court upholds FMA decision citing multiple material contraventions.
The
Financial Markets Authority (FMA) of New
Zealand has cancelled the derivative issuer license of Rockfort Markets
Limited, following a dismissed appeal in the High Court. The cancellation,
effective July 19, 2024, comes after five years of regulatory scrutiny and
failed attempts at compliance.
New Zealand Regulator
Cancels Rockfort Markets' Derivatives License After Failed Appeal
Justice
Edwards of the High Court upheld the FMA's March 2023 decision to cancel
Rockfort's license, citing multiple material contraventions of license
obligations. The court found that Rockfort had breached at least eight of its
license conditions, including failure to comply with a previous FMA Direction
Order and inadequate systems for ensuring compliance with advertising
regulations.
“Removing
a market license is one of our most significant interventions,” said Liam
Mason, FMA General Counsel. “The serious and widespread nature of the
contraventions, combined with Rockfort's compliance history and lack of
improvement following earlier actions, led us to conclude that Rockfort is not
fit to hold a license.”
The company
provides clients with trading services in FX/CFD and offers access to stocks
through the RockGlobal brand.
What the FMA Accuses
Rockfort Of
One of the
more serious breaches involved Rockfort's product disclosure statement, which
lacked mandatory information about hedging counterparties. This omission was
deemed materially adverse from an investor's perspective, potentially impacting
their ability to assess the risks associated with Rockfort's products.
The court
also found that Rockfort had failed to maintain the same standard of
capability, governance, and compliance that it had demonstrated during its
initial license application. For seven months, the company operated
with only one director instead of the required three, leading to significant
governance issues.
Rockfort
had argued that its breaches were not material and that a more lenient
regulatory response would have been appropriate. However, Justice Edwards
dismissed these arguments, noting the company's history of non-compliance and
the FMA's escalating interventions over time.
The FMA has
imposed additional conditions on Rockfort and requested that the company close
out its remaining open derivatives contracts with customers ahead of the
license cancellation. This move aims to protect investors and ensure an orderly
wind-down of Rockfort's derivatives business.
New Zealand’s
FMA seems to follow in the footsteps of its Australian counterpart and is
seeking consultation on making
derivatives safer for consumers. In June, it proposed a new law that would
restrict the maximum leverage on CFDs to 30:1, similar to other developed
markets, including Europe.
The
Financial Markets Authority (FMA) of New
Zealand has cancelled the derivative issuer license of Rockfort Markets
Limited, following a dismissed appeal in the High Court. The cancellation,
effective July 19, 2024, comes after five years of regulatory scrutiny and
failed attempts at compliance.
New Zealand Regulator
Cancels Rockfort Markets' Derivatives License After Failed Appeal
Justice
Edwards of the High Court upheld the FMA's March 2023 decision to cancel
Rockfort's license, citing multiple material contraventions of license
obligations. The court found that Rockfort had breached at least eight of its
license conditions, including failure to comply with a previous FMA Direction
Order and inadequate systems for ensuring compliance with advertising
regulations.
“Removing
a market license is one of our most significant interventions,” said Liam
Mason, FMA General Counsel. “The serious and widespread nature of the
contraventions, combined with Rockfort's compliance history and lack of
improvement following earlier actions, led us to conclude that Rockfort is not
fit to hold a license.”
The company
provides clients with trading services in FX/CFD and offers access to stocks
through the RockGlobal brand.
What the FMA Accuses
Rockfort Of
One of the
more serious breaches involved Rockfort's product disclosure statement, which
lacked mandatory information about hedging counterparties. This omission was
deemed materially adverse from an investor's perspective, potentially impacting
their ability to assess the risks associated with Rockfort's products.
The court
also found that Rockfort had failed to maintain the same standard of
capability, governance, and compliance that it had demonstrated during its
initial license application. For seven months, the company operated
with only one director instead of the required three, leading to significant
governance issues.
Rockfort
had argued that its breaches were not material and that a more lenient
regulatory response would have been appropriate. However, Justice Edwards
dismissed these arguments, noting the company's history of non-compliance and
the FMA's escalating interventions over time.
The FMA has
imposed additional conditions on Rockfort and requested that the company close
out its remaining open derivatives contracts with customers ahead of the
license cancellation. This move aims to protect investors and ensure an orderly
wind-down of Rockfort's derivatives business.
New Zealand’s
FMA seems to follow in the footsteps of its Australian counterpart and is
seeking consultation on making
derivatives safer for consumers. In June, it proposed a new law that would
restrict the maximum leverage on CFDs to 30:1, similar to other developed
markets, including Europe.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
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Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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