Inspection Reason

Many investors made telephone calls to the inspection team asking for disclosure of more New Zealand lincesed brokers whose real addresses were different from their regulation addresses. According to investors’ feedback and the inspection team’s working plan, the surveyor decided to go to eForex’s office in New Zealand and have an intuitive view of the broker.

Office Building

According to the regulation information, the New Zealand licensed broker was located at Suite 12, 231 Dairy Flat Highway Albany Auckland. The surveyor decided to visit the broker.

The surveyor found the building indicated by the regulation information without much trouble according to navigation.

Featured Photos

The surveyor then entered the building and found the building’s number on a wall of the lobby on the 1st floor. As was indicated by the floor guide on the 1st floor, it was not eForex’s office but other company’s office on the 17th floor.

In order to ensure inspection quality, the surveyor took the elevator to the 17th floor and found threre were two office areas on the floor. One of the office areas belonged to fusion5 and another was empty.

Conclusion

It was confirmed after the surveyor’s inspection that the real address of eForex in New Zealand was different from its regulation address. The broker’s EEA license issued by FCA was suspected to be a cloned licensewhich had been cancelled.Morevoer, the broker operated beyond its licensed business scope as was shown by its financial service company license issued by FSPR and investment advisory license issued by ASIC, the broker operated beyond its licensed business scope.