Kirjoittaja Aihe: Looking for a Safe and Secure Way of Forex Trading? (Luettu 227 kertaa)

upamfva · 06.04.23 - 11:13

Looking for a Safe and Secure Way of Forex Trading?

FINMA is the regulatory organisation in Switzerland. More properly known as the Financial Market Supervisory Authority, it is the Swiss government body responsible for the regulation of financial markets. It reports directly to the Swiss parliament but is institutionally, functionally and financially independent. FINMA was formed in 2007 when the Federal Act on the Swiss Financial Market Supervisory Authority was passed. FINMA was an amalgamation of the Federal Office of Private Insurance, the Swiss Federal Banking Commission, and the Anti-Money-Laundering Control Authority. Following the merger, it became the only agency with responsibility for Swiss financial regulation.To get more news about finma regulated forex brokers, you can visit wikifx.com official website.

What does FINMA do?
FINMA is the Swiss regulatory body, and as such has authority over banks, insurance companies, securities dealers, stock exchanges, collective investment schemes and, of course, Forex brokers. FINMA is responsible for setting rules and regulations that financial institutions have to comply with. These generally encompass the operation and conduct of their business. The standards that FINMA has decided to put in place are very high; far higher, in fact, than most other regulators – even the FCA and the CFTC. And getting a licence is really difficult, which is possibly why there are so few FINMA-regulated brokers.
FINMA Forex brokers have to follow strict regulations.
The regulations that FINMA sets are in relation to the way a firm operates and conducts their business. By putting such regulations in place it ensures that all financial transactions are transparent and safe. It also prevents, and protects consumers from, fraudulent activity.
FINMA also regularly audits the financial institutions they have licensed, and performs investigations. Should an anomaly be found it will be investigated on a deeper level. FINMA also has the authority to impose fines or suspend licences should there be any breach of protocol or breaking of the rules.

FINMA has some very substantial powers over financial institutions, and any decisions made by the authority tend to be final. However, individual institutions do have the right to take the matter to the Swiss courts should it be felt that the actions of the authority are unreasonable.

How consumers are protected by FINMA
Should a trader decide to trade in the Forex market using a FINMA Forex broker they can be sure of the utmost safety and protection. As the head of consumer protection, FINMA is constantly reviewing and updating its framework. On offer are a wide range of resources that are designed to help consumers stay safe from financial fraud. The authority can be contacted directly via a direct phone number, and consumers are also able to register complaints directly using an online complaint form. FINMA has created a comprehensive website for consumers with all the necessary links and information, making it a great resource for those who want to learn more about relevant regulations, and companies that are members of the organisation.

On a regular basis, FINMA issues press releases and newsletters designed to keep the general public updated with regard to their findings, new companies, and any that are blacklisted. Should a trader or member of the general public find themselves in a situation whereby legal proceedings are necessary, then FINMA is able to offer considerable support. It can help with finding the right ombudsman service with which to make a complaint, or helping a member of the public find the right kind of legal representation.

Switzerland takes customer confidentiality very seriously.
Many leading advocates of investor privacy and protection of client funds hold Switzerland up as a shining example. Swiss laws happen to be very particular about safeguarding investors’ interests as well as those of the Swiss general public. It is virtually impossible for any outside organisation to get Swiss-regulated organisations to disclose financial data.

There has, however, been one instance when a Swiss organisation was forced to succumb to outside pressure, although it didn’t give in as much as was hoped. It happened in 2009, when the US government filed a suit against the Swiss bank UBS, asking them to reveal the names of its 52,000 American customers. This course of action was taken because the US government believed that the bank and the American customers were conspiring to defraud the US revenue authorities of legitimately owed tax revenue. Such an action is contrary to Swiss law, but eventually, a very small number of clients’ names were revealed, and a US$780 million fine was paid in settlement.

Is it easy to find a FINMA Forex broker?
Because of the strict regulations and rules imposed on financial institutions by FINMA, there are only a few Forex brokers regulated by FINMA. But those that have gone to the trouble of applying for and being granted a licence are possibly some of the finest in the Forex industry, making trading with FINMA Forex brokers extremely safe and secure. However, just because a broker isn’t regulated by FINMA it doesn’t automatically mean they are a bad one. It’s just that many Forex brokers, and this includes some of the most reputable ones, choose not to apply for a FINMA licence, and instead choose a far less strict regulatory body.

Switzerland keeps its financial world in check with very strict regulations.
Ask anyone to picture what life is like in Switzerland and most seem to think of it as perfect. For the most part it is, and this is due in no small part to the strict regulations Swiss citizens have to comply with. These regulations are in place to ensure that the country runs smoothly, and that includes financial transactions.

All in all, FINMA has managed to exceed expectations, and is able to make banking and trading in Switzerland as safe a form of investment as possible. It is possibly the most powerful regulator in the world, and manages to use its powers for the good of ordinary investors. Finding a FINMA Forex broker is certain to keep you and your investment safe and well protected; and the good news is you don’t even have to be Swiss to benefit.