The Vanuatu VFSC Approves the Mandatory Office Requirement for All Licensed Forex Brokers
In a decision that the FX & CFD investment community has been anticipating for several years now, the Vanuatu VFSC has officially passed their proposed physical presence requirement into law.
We’ll outline these changes in today’s post, explaining how it will impact forex brokers looking to apply for a license in Vanuatu as well as existing FX brokers licensed in Vanuatu.
How does the VFSC Office Requirement Impact Existing FX & CFD Brokers?
The Vanuatu VFSC now offers two options for licensed Security Dealers. The first option is to open a physical office on the island. It’s worth highlighting that the VFSC explicity states this office space should not be shared with any other businesses; in other words it must be a dedicated physical space.
In addition to the physical office requirement, a minimum of one employee must physically reside in Vanuatu and work full time in the dedicated office space. This means that licensed FX brokers in Vanuatu can no longer without any physical presence, something that was possible since these license first hit the marketplace some years ago.
Vanuatu Licensed Resident Manager – An Alternative for Licensed FX Brokers in Vanuatu
The second option is for the licensed broker to apply as a licensed resident manager. This option is advantageous for brokers who do not wish to relocate a staff member to the island. Instead, they are able to hire a licensed resident manager to overtake these responsibilities.
When considering this option it is important to note that there are certain requirements for resident managers which must receive approval from the VFSC. This option is appealing to brokers that would prefer to outsource the requirement, a service we can assist with.
How Do These New Requirements Impact Licensed Vanuatu Forex Brokers?
Because this change was announced only recently, licensed VFSC Security Dealers will have a 12 month grace period to accommodate the new requirements. This grace period will also apply to pending Security Dealer applications. Note, however, that any new applicants must adhere to these requirements in order to receive approval and no grace period is offered.
Since 2014, Atomiq Consulting has serviced forex & CFD brokers looking to apply for a license in Vanuatu. Our team of experts can help your FX broker with every step of the application process.
To learn more about the costs involved in obtaining a forex broker license in Vanuatu, discuss the new resident manager requirement, or speak with one of our consultants, don’t hesitate to contact us today!
