1. Hmm. . When people keep saying things such as, the legislation comes into effect, I'm still not sure what law they mean. Can anybody point out to me which law so that I can look it over?
2. As a Malaysian citizen and licensed Bank trader, I'd like to think I'm pretty proficient enough in my country's rules and regulations (BNM's ECM9 is my particular favorite) joining a citizen's best to invest in foreign currency assets. So naturally I'm worried if there was a law I'm not aware of.
3. Should you say there was a crackdown recently, I have never heard itbut I will take your word for it did happen.
4. You are living in KL? I hope that you enjoy it here so far. Nevertheless, perhaps you are not aware that stable http://en.wikipedia.org/wiki/Foreign_direct_investment (FDI, as economists call it, that's the only investment which should matter to a country) has come into this country at a fairly good clip despite this country's exchange control measures since 1997. I see this flow fairly often in my capacity as a bank trader.
5. So I'm not certain how having retail brokers licensed in Malaysia (which will serve only a small percentage of retail punters domestically, by the way) will help bring foreign business investment (as you put it) in this country. Or if this investment may even be beneficial to my country.
6. Now that I think of it, who exactly are you and your group serving? The interests of the fellow citizen investors or the interests of the foreign business investment?
7. Nevertheless, I'm not one to knock someone else's way of making cash. So I want you and your group well on your negotiations with BNM. Although, being intimately familiar for the past 15 years with how BNM guys operate, I'm not too sure you will get very much. I want you well no matter hope you'll keep us updated as to your progress.
8. For the details of the casual reader, Malaysian principles provide for citizen's ability to invest in foreign currency assets without the need to have DOMESTIC retail FX brokers. As long as they do not speculate against the ringgit. This is fact.
9. Perhaps the reason retail brokers are not permitted in Malaysia is indeed that investments in foreign currency assets are limited to a more well-informed investor-class and not to ill-informed countryside hillbillies who'll always complain to BNM if they lose their life savings. This is my view.
10. Let us bear in mind also that a General Election is due within the next 2 years...
Originally Posted by ;
4) They need permission to do this from BNM or else they're doing this illegally. Permission was given in the past for forex expos and conventions. After 2010 though consent hasn't been given and a crackdown ensued after a well known Russian outfit held an expo without consent. As far as I know they're still holding seminars and feeding KFC into the attendees (elegant I know).
5) They could, however, if there are any forex business logos or some other recommendations given to trade with a forex firm, the legislation comes into effect.
4) They need permission to do this from BNM or they're doing this illegally. Permission was given previously for forex expos and conventions. After 2010 though consent hasn't been given along with a crackdown ensued following a well known Russian outfit held an expo without consent. So far as I understand they're still holding feeding and seminars KFC to the attendees ( I know).
5) They could, however if there are any forex business logos or some other recommendations given to exchange with a forex company, the law comes into effect.
7) I understand how it is in your nation. I'm living in KL and I'm part of a team who's negotiating with BNM to prepare forex regulation and licensing to retail brokers in order to attract foreign business investment into Malaysia. The excellent success of sc here just goes to emphasize the fact that there is great potential here for properly controlled and legitimate businesses to flourish without wreak havoc locally.
It still stands that an unlicensed company can't give courses, seminars, and take deposits, help them to open accounts with said firm, or otherwise help a Malaysian to enter the Forex market.
No matter how you try to spin it. .
1. I am not trying to spin anything. I do not conduct seminars or act as an introducing broker.
2. I myself do not enjoy these conventions dispersing in my nation as they put too much spotlight on valid investor activity in foreign currency assets (that are, in reality, allowed by the laws of my country). I'd enjoy it that as few people understand how to trade FX.
3. I like my fellow citizens to make their own due diligence and research on the best way best to go about engaging in the aforementioned aforementioned activity. They should make their own investing/trading decisions rather than engage different people to perform it.
4. As for businesses being unlicensed... I am not sure how they do things on your nation, but in my state businesses don't seem to require any accreditation to conduct seminars. Not an ideal situation, I understand, but that is how it is.
5. So basically, a company can get a business license for pretty much anything as long as it doesn't involve anything illegal. In other words, a seminar company can, as an example, conduct seminars on trading egies without any reference to anything forex-related and declare the information presented is just for info only (in the disclaimers).
6. I agree when you say that an unlicensed company cannot offer courses, seminars, and take deposits, help them to open accounts with said business, or otherwise help a Malaysian to enter the Forex market. However, a LICENSED firm (any business license will do) CAN give short courses and seminars full stop. Unsanctioned deposit taking is, of course, a no-no.
7. Again, not savory by any stretch of the imagination, but that is how it is in my country.
1. Hmm. . I am not sure what legislation you mean.
2. There is, for instance, no law that I know of in Malaysia that limits people from teaching others how to trade, which is a skill that may be implemented in the majority of markets.
3. The emphasis is really more on the actions of retail traders (who are Malaysians) who trade FX onshore for other people i.e. these traders are taking deposits without a license, which is the sole legal component that actually matters in this discussion.
I do not think so. The emphasis is much more on brokers that are busy in Malaysia providing conferences, lessons or otherwise actively promoting forex trading in Malaysia. I know of one firm operating like this in Malaysia in breach of the law. I suspect they won't be doing this for much longer.
1. Hmm. . I'm not sure what legislation you mean.
2. There is, for example, no law I know of in Malaysia that limits people from teaching other people how to trade, and it is a skill that can be applied in the majority of markets.
3. The emphasis is actually more on the activities of retail traders (who are Malaysians) who trade FX onshore for some other individuals i.e. those traders are accepting deposits with no permit, which is the sole legal aspect that actually matters in this dialogue.
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