Excelsior
Markets has been removed from the register of financial service providers. Owned by interests in Pakistan, operating out
of Sri Lanka, and with only an administrative presence in New Zealand,
Excelsior was deregistered because local registration created a false and
misleading appearance that its overseas clients would be protected by New
Zealand law.
The High Court was told Excelsior offers
facilities for foreign exchange trading.
It has no New Zealand clients. It
is has clearing accounts with CFH Clearing House in London. CFH Clearing requires account holders to be
regulated by a financial services regulator.
Excelsior used its New Zealand registration as an entrée into CFH
Clearing and to garner contacts with Goldman Sachs, UBS and Barclays.
The Financial Markets Authority
deregistered Excelsior in May 2015, a decision upheld by the High Court. Excelsior had no New Zealand clients on its
books. A client holding account in Sri
Lanka held a balance of US$513,300 as at March 2015. Excelsior is a New Zealand registered
company, but offers little more than administrative services for company
operations carried out overseas. Justice
Nation said its registration in New Zealand as a financial services provider
would mislead overseas customers that their transactions would be governed by
New Zealand law.
In 2014, the Financial Marketing
Authority was empowered to deregister providers not trading in New Zealand.
Excelsior
Markets v. Financial Markets Authority – High Court (18.12.15)
16.026