FMA aware of Global Brokers NZ's breach

The Financial Markets Authority knew bust forex broker Global Brokers NZ was in breach of financial regulations, but appears to have taken no action.

Information provided to Fairfax under the Official Information Act lists Global Brokers NZ among 3892 companies that failed to comply with the Financial Reporting Act as of March 2013.

The act required all subsidiaries of foreign companies to file audited financial statements to the Companies Office or face potential criminal sanction by the Companies Registrar.

On Friday, Excel Markets told customers it had sustained a total loss of operating capital after an unexpected Swiss central bank decision triggered dramatic currency market moves.

"GBL can no longer meet regulatory minimum capitalisation requirements of NZ$1,000,000 and will not be able to resume business," it said.

Global Markets NZ was an authorised futures dealer under the Securities Markets Act, but was required to apply for a new Derivatives Issuer licence when the law changed on December 1 last year.

In a statement, Financial Markets Authority spokesman Andrew Park said: "We are aware of previous breaches of the terms of their authorisation as a futures dealer, regarding the provision of financial statements.

"Any historical issues of non-compliance are taken into consideration during the application for a licence under the Financial Markets Conduct Act, and this is the case for all market participants. We are still in the process of considering Global Brokers' application for a Derivatives Issuer licence."


Global Brokers NZ has never filed financial statements. Its current owners - Epicus Corporation and XT International Holdings, both registered in the British Virgin Islands – have been shareholders since October 2011.

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Under the act, directors failing to file accounts faced infringement fees of $7000 each, as well as fines of up to $100,000 each if prosecuted and convicted.

Its current managing director is Michael Samuel Johnson, whose registered address is in Kinsale, Ireland.

Irish company records list Johnson as an American aged 35 living next door to former Global Brokers NZ director Jason Erik Peterson, also an American aged 35.

Johnson is also listed in US company records as the manager of Project Triumph, a limited liability company registered in Gainesville, Florida, which is described in one of its press releases as operating several websites within the foreign exchange industry.

Peterson is described on specialist currency market news site FXStreet as a co-founder of Project Triumph.

Other sites associated with Project Triumph are and

Johnson and Peterson could not be reached for comment.

Global Brokers NZ offered customers contracts for difference, a kind of derivative that allows traders to bet on changes in the price of an underlying asset. 


Related Links

Global Brokers NZ goes bust

New Zealand currency broker closes on Swiss shock

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