AndFCAComparable Cayman regulation, andFCAWhat's the difference?

2018year8month1Starting from today, the European Securities and Markets Authority（ESMA）And the UK Financial Conduct Authority（FCA）The new regulations have been officially introduced.

Can be considered the strictest foreign exchange and price difference contract in history（CFDs）Regulatory regulations,30：1The following ultra-low leverage, restricted reward activities, negative balance protection mechanism, and increased to50%The proportion of warehouse closures.

At this historic regulatory change, the Cayman Islands Financial Authority, with its flexible leverage ratio trading(CIMA)Entered the eyes of investors.

Can you imagine that in the Cayman Islands, the Caribbean Sea, a land area only China1/36923The small archipelago is actually:

World's fourth largest financial center, world's fifth largest banking center, Organization for Economic and Cooperative Development（OECD）One of the members on the whitelist, overseeing500Multiple banks, exceeding9000Hedge fund companies, near11000Home Mutual Fund......

Even well-known industry giants such as Alibaba, Tencent, Baidu, Coca Cola, Procter&Gamble, Intel, and others are settling down here.

The rise of the Cayman Islands is mainly due to the country's legal ability to maintain its leading position in finance, insurance, commerce, and other fields. Currently, there are572Several world-renowned banks have established branches here to provide financial services, with a total of approximately5Trillions of dollars come from deposits around the world. In addition, Cayman is also one of the main markets for global euro trading.

The Little Archipelago has shown its prowess in the financial industry, and its behind the scenes are many achievementsCIMAMocha

The order behind all this prosperity relies on the powerful local financial regulatory body of the Cayman Islands - the Cayman Islands Financial Authority（CIMA）。

Cayman has long been renowned as a financial center, and its existing legal system and government policies can contribute to financial innovationProvide a good institutional environment.

1997Since the beginning of the year, inCIMAEstablished20Over the years, the financial order of the Cayman Islands was gradually established and maintained.

2017At the end of the year, the Cayman Islands enacted the "Anti Money Laundering Law"

From currency issuance, financial services regulation, overseas regulation, to combating corruption, money laundering, and tax evasion, the Cayman Islands Financial Authority（CIMA）Both provide a sound framework and always strictly adhere to international compliance standards to maintain the reputation of their jurisdictions.

CIMANot inferior to mainstream regulatory agencies

In fact, in terms of regulatory procedures and requirements,CIMAAndFCA、ASICThere is not much difference among mainstream regulatory agencies, as they have strict regulatory requirements for regulated enterprises.

Australian Securities and Exchange Commission（ASIC）The license is a financial service provider license that allows for brokerage and hedging operations. The funding requirement is110AUD 10000, annual fee based on revenue3,500reach50,000The Australian dollar varies. There are strict procedures and requirements for office establishment, financial accounting and auditing, customer fund isolation, and regular company reporting.

The Financial Conduct Authority in the UK（FCA）On the one hand, the regulatory system is extremely strict, with a hierarchical system implemented for licenses, and different licenses have different business permissions.FCARequire mandatory segregation of customer accounts and require brokers to provide maximum50,000GBP Financial Services Compensation Plan（FSCS）. In addition, brokers also need to provide customers with the best execution and must ensure the submission of periodic reports.

In fact, the Cayman Islands Monetary Authority（CIMA）Our regulatory services are closest to those of the UK Financial Supervisory AuthorityFCAImplementation guidelines.

This is because the Cayman Islands are an overseas territory of the United Kingdom, and the United Kingdom reserves the right to extend the application of certain legislative provisions to the Islands, which is done through a Privy Council order (enacted by law) based on royal privileges.

In addition,CIMAThere is a strong elastic operating space in the setting of leverage ratio,If you are an investor with a preference for high returns and strong risk resistance, you can choose one with a more flexible leverage ratioCIMARegulatory Services (Cayman Islands Monetary Authority).

In terms of customer fund security and regulatory protection,CIMAandFCASimilarly, it is one of the few regulatory agencies in the world that does not allow any exemption from fund segregation.

CIMA and FCA Similar institutional provisions

(A)Strict legal header requirements are implemented for customer asset accounts to ensure that funds are deposited in the customer's name

(B)Regularly clear and reconcile customer fund accounts on a daily basis

(C)Ensure in writing or agreement that the broker holds client funds as a trustee, and the bank has no right to merge any funds in such accounts with any other accounts of the broker, or to seize or counterclaim funds in the client's bank account for any debts owed by the licensee

Currently, the Cayman Islands Monetary Authority（CIMA）We have reached bilateral and multilateral memorandums of understanding and commitments with dozens of countries and regions such as the United States, Canada, the Caribbean, the United Kingdom, and South America.

This also directly indicates thatCIMAInfluence in the international financial services industry.

Want to obtainCIMARegulatory license? Must pass layers of rigorous screening

CIMANot only does it have a sound regulatory system, but it is also known for its tough enforcement rules.

CIMALicensed companies also need to conduct a lot of due diligence. For example, if a foreign exchange broker wants to obtain a regulatory license in the Cayman Islands, they need toApply for registration locally and specify the scope of operation asForeign exchange transactionsServices.

CIMAForeign exchange brokers under supervision，Applying for a license requires submitting a series of necessary documents:Internal and external process manuals, compliance processes, and detailed business plans of the company.

CIMAForeign exchange brokers applying for licenses also need to pass operational qualification checks to ensure that the company, as a foreign exchange broker or investment company, hasAdequate continuous operational capability。

It can be seen from the regulatory environment that the Cayman Islands Financial Authority（CIMA）Not only does it haveStrict anti money laundering system, strict monitoring and suspicious reporting requirements, as well as strict customer fund protection regulations, strict net asset regulations, and strict enterprise management requirementsVarious comprehensive and visionary policies and regulations.

This is also an important reason why the Cayman Islands stand out as one of the international financial centers.

In addition,suffer CIMA Regulated brokers must also fulfill many obligationsIncluding:

• Annual audit of accounts
• Submit compliance certificate and annual financial statement
• Any changes in company information must be notified
• The auditor must provide an opinion on the internal control measures of the licensee
• Certified Broker/Dealers are required to submit monthly reports
• Submit detailed information of current insurance coverage
• Reconcile the balance sheet accounts annually

Looking at the present,2018year1month3Japanese European Financial Regulatory AuthorityMiFIDIIAfter the new regulations came into effect, they had a significant impact on the entire financial industry. Especially for local brokers in the UK, their business expansion is limited and their revenue capacity is declining.

especiallyMiFID IIThe restrictions on leverage in the new regulations are difficult to meet investors' demand for margin ratios.

This also led to the Cayman Islands Monetary Authority（CIMA）Highlight the advantages under supervision Shine brilliantly in the international financial market.

ManyFCARegulated brokers have invested in the British overseas territory, which also has strict regulatory systems but is more flexible - this western Caribbean archipelago in Central America.

In order to reduce its impact, the globally renowned foreign exchange broker Jiasheng Group2016Corresponding measures have been implemented since the beginning of the year, and the existingFCARegulatoryFOREX.comOn the basis of the services provided by Jiasheng UK, it also launched the Cayman Islands Financial Authority（CIMA）A brand new regulatory approachFOREX.comJiasheng Global Market Services. Based on years of experience in serving the Chinese market, Jiasheng has transformed its previousFCASupervised1：400The proportion continues to be used inCIMAUnder supervision. It can be said that,Jiasheng Group is the first foreign exchange broker in the industry to provide customers with such measures to respond to regulatory changes in advance.

Huiyi InteractionFOREXBBSIt is recommended that investors consider not only regulatory considerations but also the company's information transparency and operational stability, such as financial and operational models, as well as its ability to respond to regulatory situations, before choosing a broker for account opening transactions. In addition, the financial operation status of the company can be clearly and timely accessed online.

Global regulation is always constantly changing, and in this process, only the best and most stable brokers can continue to operate because they have sufficient capital and operational capabilities to cope with these changes, providing customers with better services and experiences.