SEC launches registration fee estimator, but FX brokers “RED List” won’t go away
The Securities and Exchange Commission (SEC) yesterday announced the launch of an online tool to help companies calculate registration fees for certain form submissions, with the aim of improving the accuracy of fee calculations and minimize the need for corrections, as well as to provide guidance on completing the related fee tables and a better […]
The Securities and Exchange Commission (SEC) yesterday announced the launch of an online tool to help companies calculate registration fees for certain form submissions, with the aim of improving the accuracy of fee calculations and minimize the need for corrections, as well as to provide guidance on completing the related fee tables and a better and clearer understanding of the costs for submitting filings.
These include forms used to register initial public offerings, debt offerings, asset-backed securities, closed-end mutual funds, limited partnerships, and small business investment companies.
The Office of Financial Management, however, reminds users that “the tool should not be relied upon as an official SEC calculation or verification of these filing fees. Filers will remain responsible for paying all required fees and accurately including all required information in their filings.”
Hopefully, this improved access to information may reduce the regular update to the CFTC’s RED List, composed by foreign “Registration Deficient” (unregistered) firms operating, soliciting and accepting funds from U.S. residents at a retail level for trading FX or binary options.
Yesterday, the list added 23 new foreign entities operating outside of legal requirements:
Banc de Options
Diamond Managed Forex
Forex Broker Inc.
Forex Investment Services
Golden Tangent Holdings
Paam-Maam Forex Fund Management
Profit Forex Corp
The SEC changes in its online filing information, however, might not be enough to change this pattern for several factors. Many of the blacklisted firms have no intention of being regulated for reasons of transparency (potential fraud) and financial costs, preferring to operate under the radar.
Also, but not as relevant, registering a FX broker in the US soil remains a headache for some due to the confusion provided by the existence of two organisms accepting registration of FX dealers: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC, with oversight from the House Financial Services and Senate Banking committees, regulates stock exchanges and financial companies that sell securities. The CFTC, with oversight from the House and Senate agriculture panels, regulates trades in commodities from orange juice to foreign currencies. However, both SEC and CFTC regulate hedge funds and securities firms, both trading equities and commodities.