Forex Brokers’ License Solutions | Pre-licensing Assessment |FX Broker License Application Management | Post-licensing Risk and Compliance Solutions

We offer a comprehensive set of solutions to help you obtain and maintain a forex broker's license, tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• Regulated FX brokers' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our financial licensing solutions to help you navigate the complexities of the forex brokers' licensing regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the forex brokers' licensing process, including but not limited to the following aspects:

• Forex Brokers' license Guidance: Advising on a wide range of aspects associated with forex brokers' license as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:
• Drafting the necessary policies and procedures to help you comply with the forex brokers' license conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the forex brokers' licensing regime
• FX brokers' License Application Support: Covering the entire licensing process
• Post-licensing Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Jurisdictional Coverage of our Forex Brokers’ License Solutions

We can help you apply for a forex broker's license or its equivalent in the following jurisdictions:

• Australia: For more information on the Australian forex brokers' license equivalent – the Australian Financial Services License (AFSL) for Forex Brokers, you can visit our Australian Forex Brokers' AFSL page.
• New Zealand: For more information on the New Zealand forex brokers' license equivalent – Financial Service Provider (FSP) Registration for Forex Brokers, you can visit our New Zealand Forex Brokers’ FSP Registration page.
• United Kingdom: For more information on the United Kingdom's forex brokers' license equivalent – FCA Authorisation for Forex Brokers under the Financial Services and Markets Act 2000 (FSMA), you can visit our FCA Authorisation page for UK forex brokers.
• Singapore: For more information on the Singapore forex brokers' license equivalent – Capital Markets Services (CMS) License for Forex Brokers, you can visit our Singaporean Forex Broker’s Licence page.
• Prominent Financial Centres and Offshore Tax Havens: We also offer forex brokers' licensing solutions for prominent financial centres and offshore tax havens, including but not limited to:
  • United States: Where forex brokers are regulated by the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act and must obtain NFA Membership as Retail Foreign Exchange Dealers (RFEDs) or Futures Commission Merchants (FCMs).

  • Belize: Where forex brokers are regulated by the International Financial Services Commission (IFSC), requiring a license under the IFSC Act.

  • Cyprus: Where forex brokers are regulated by the Cyprus Securities and Exchange Commission (CySEC), requiring a license under the Investment Services and Activities and Regulated Markets Law.

  • Seychelles: Where forex brokers are regulated by the Seychelles Financial Services Authority (FSA), requiring a license under the Securities Act 2007.

  • Mauritius: Where forex brokers are regulated by the Financial Services Commission (FSC), requiring an Investment Dealer License under the Securities Act 2005 and the Financial Services Act 2007.

  • Other jurisdictions with a forex brokers' licensing regime.

 

Service Coverage

We offer comprehensive support for a wide range of FX license applications tailored to meet the specific needs of the following businesses:

• Retail Forex Brokers
• Institutional Forex Brokers
• STP (Straight-Through Processing) Forex Brokers
• ECN (Electronic Communication Network) Forex Brokers
• Market Maker Forex Brokers
• Multilateral Trading Facilities (MTFs)
• Algorithmic and High-Frequency Trading (HFT) Forex Brokers
• Forex Introducing Brokers (IBs)

You can find more information about our forex brokers' license solutions below:

 

Forex Brokers’ Licensing Preparation

Pre-licensing Compliance Assurance

Our forex brokers' license solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a forex brokers' license
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the forex brokers' licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your forex brokers' license, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• FX brokers' License Application Plan: We help you establish a roadmap to effectively meet the forex brokers' license requirements

 

 

Forex Brokers’ License Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our forex brokers' licensing solution covers:

• Compliance Model Selection: To help you best comply with the forex brokers' licensing regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for forex brokers' providers and other applicable regulated FX brokers’ obligations, keeping in mind your specific circumstances, available resources and business goals.

 

Entering Forex Brokers’ Licensing Environment

We help businesses transition from an unregulated environment to operating under the forex brokers' licensing regime, helping them meet their obligations as forex brokers' license holders.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the forex brokers' licensing regime requirements.

Our focus areas for this service include:

• New businesses
• Existing forex brokers operating in unregulated markets
• Regulated forex brokers expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce regulated custody services trading as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licenses across various jurisdictions, we help businesses remain compliant with regulated FX brokers’ obligations globally.

 

Forex Brokers’ License and Wholesale Markets

Getting a forex brokers' license may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist forex brokers that:

• Operate in the wholesale markets
• Operate under exemptions from the forex brokers' licensing regime
• Operate under a forex brokers' licence limited to sophisticated, eligible, and wholesale investors

We help these businesses comply with the regulatory compliance obligations that still apply despite the absence of the forex brokers' licensing regime or apply under the wholesale-only licensing framework, including:

• Advertisement Rules
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors (an integral part of the forex brokers' licensing regime)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations
• Data Management Laws and Regulations

 

 

 FX Brokers’ License Application

We assist with your license application through ongoing engagement in the forex brokers' licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your forex brokers' license application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• FX Brokers' Licensing Process and Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving Forex Brokers’ License Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our forex brokers' license solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Forex Brokers' License Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with forex brokers' licensing regime requirements.
• Specific License Conditions Compliance: We can help you manage additional conditions imposed on your forex brokers' license, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.

• Licensing Issues Handling: We address common licensing issues encountered during the forex brokers' licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed forex brokers. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• Regulated FX Brokers’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the forex brokers' licensing regime and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Forex Brokers.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• Regulated FX brokers’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• Forex Brokers’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for forex brokers. For more information, visit our Specialised AML/CFT Solutions page for Brokers.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for Forex Brokers’ License Holders

Forex brokers' license holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

Forex Brokers’ License and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more.
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil regulated FX brokers’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the forex brokers' licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the forex brokers' licensing regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet regulated FX brokers’ obligations for maintaining required financial resources.
• Liquidity Management Requirements: We can assist you in developing controls to comply with liquidity management requirements.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the forex brokers' licensing regime.
• Automated Trading Regulations (where applicable): We can aid you in developing controls to meet automated trading regulations, including compliance with algorithmic trading rules and reporting requirements.
• Digital Payment Token Services (where applicable): We can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the forex brokers' licensing regime and AML/CFT requirements for transaction monitoring and reporting.

 

Forex Brokers’ License and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with FX brokers' licensing obligations for overseeing outsourced services, also covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with regulated FX brokers’ obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with regulated FX brokers’ obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet regulated FX brokers’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the forex brokers' licensing regime.

 

Forex Brokers’ License and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for regulated FX brokers’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with forex brokers' licensing standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help regulated FX brokers’ obligations comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: We can help you comply with FX brokers' licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.

 

Forex Brokers’ License and Resource Management Obligations

We can help you comply with the following requirements of the forex brokers' licensing regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:
• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and compliance regulations.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

Forex Brokers’ License and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • FX brokers' licensing obligations
  • Forex Brokers’ AML/CFT obligations (SMRs, STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • Regulated FX brokers’ obligations under financial market conduct regulations
  • Specific transaction reporting to relevant depositories
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the forex brokers' licensing regime, applicable operational standards, and more.