New NZ Gov't Regulation on Overseas Trading Accounts

[SBQ]

I had this too. OMF confirms there are no new govt regulations. I think it's this from https://www.fma.govt.nz/contact/faqs/#Foreign:

So unless we're a wholesale investor, or managed fund to answer your question, we apparently need protecting from ourselves. And the US brokers have obviously made the decision that this market isn't worth the time/money/hassle to get a licence from the FMA when the rest of the world is their oyster.

I think you're right on the spot with the FMA being the problem. I had no idea NZ had such regulatory requirement that applied to OVERSEAS financial institutions. I thought the FMA was to clean up the NZ investment industry over bad deals going on like the collapse of Hanover Finance.. etc. Anyways I heard a similar problem for Canadian residents some years ago where US brokerage firms stopped issuing new foreign accounts and / or basically looked at closing their accounts because they couldn't meet some IRS requirement. If I recall correctly, some US brokers had to prove to the IRS that they had a bon a fide relationship / business in Canada. This was not a problem for brokerage firms like TD / Ameritrade which operates in both countries but for some like Interactive Brokers, they simply refused to open foreign accounts.

I'm also not happy with the double standard that the FMA states. It's ok for clients with "large sums of money" but not for the retail investor? I mean what the h3ll does "large sum of money" mean in terms of a figure?

I've spoken with local brokerage firm Jarden Investments and they were unaware of such regulatory law change.

Not that I trade derivatives or forex but I do fear that the next step is they will simply just close all NZ address accounts. We're already subjected enough under FIF / FDR, i'm certain this offers absolutely no incentive for the wealthy migrant (who is already invested in US equities / options etc) to move to NZ. For now i'm 1 step being closer to moving back to Canada.