Japanese customers of the company can have full trust in its ability to protect clients’ interests
About a year and a half ago a regional Japanese regulator – the Kanto Local Finance Bureau’s whose jurisdiction is in central Japan, has issued a Business Improvement Order against FXCM Japan Securities Co. The company was mandated to review its business practices related to risk management, business administration and compliance, and internal controls, since there was a complaint filed with the Bureau.
In consequence on July 3rd 2012 the company has filed its Business Improvement Report to the regulator’s attention and just yesterday the company has been successfully redeemed by the local Japanese regulator. There are a total of 9 regional financial regulators in Japan and each has different provisions. The unique case is only with Kanto in Central Japan as all operating forex companies have to register with Kanto’s Finance Bureau separately.
Over the period FXCM Japan has worked diligently to enhance its internal control systems and specifically its risk management and customer protection systems. According to FXCM Japan’s President Kazunori Iida the company’s top priority has been to reestablish its credibility with its Japanese customers and continue delivering solid trading experience.
Our research has found this was not the only company to come under scrutiny from the Kanto Financial Bureau – GMO Click has had a similar order imposed on its business. It appears that the region in question has a more thorough way of verifying client complaints with forex companies and does it in a rather public way.
FXCM’s (NYSE:FXCM) CEO Drew Niv has expressed the company’s apologies to its customers for the inconvenience caused by the above mentioned case.
On a related note the company keeps upgrading its advanced technological solutions in the region by recently deploying a global matching engine in one of Equinix’s IBX data centers in Tokyo. Ensuring high-speed execution and reliability for its clients in the Asia Pacific region remains top priority considering the big amounts of volumes that the region’s expansion is likely to generate. FXCM aims to solidify its position as one of the major forex brokers in Japan.
For the full press release visit FXCM’s website.