FSPC or FSPL stands for Financial Service Provider Commission or Register, and is an independent agency that reviews companies providing financial services and issues corresponding licenses if the companies comply with the international standards of transparency, performance and liquidity in the financial market. The FSPC agency operates on an international level and makes sure that general international norms are in place with their registered entities. The FSPC reserves the right to inspect business conduct of every company under their supervision to make sure that the businesses still align with international standards. Mostly, they accredit investment firms, electronic money issuers, stock companies, debt collectors, and of course, Forex broker companies. The FSPC operates in several countries which are: the Cook Islands, Marshall Islands, Mauritius, Saint Vincent and the Grenadines, and Seychelles. The registry system encompasses all companies, individuals, and capital market participants registered with the FSPC. Search the FSPC register by country if you want to find FSPC regulated Forex brokers. The FSPC is not a government agency but defines internal criteria for registration as an independent registration body.
The FSPC in Popular Countries for Offshore Business
The Cook Islands, Marshall Islands, Mauritius, Saint Vincent and the Grenadines, and Seychelles are all favorite destinations for offshore companies who enjoy the low taxes and loose legislation in these island countries while their client base consists mostly of internationals. Conveniently, the FSPC offers an official license to all those companies who operate in the five beautiful islands. All of these destinations are witnessing the rise of the Forex market on their territory given the onrush of different Forex brokers. The FSPC works on self- defined principles and requires Forex companies to meet certain criteria in order to obtain an FSPC license. These criteria include a minimum capital requirement of $35,000, qualified and professional managers with adequate experience, as well as competent representatives, risk management, conflict- resolution management, and dispute resolution services. The FSPC has the right to revoke the license and blacklist a broker company. In general, the FSPC stands for fairness and market integrity and fair competition. Still, the fact that it is not regulated by any government causes mistrust of many customers.
Economic Growth of the Island Countries
All of the five islands rely severely on the tourism sector and international investment to boost their economies. The isolation of the islands hinders economic development and all of their governments offer attractive conditions to international companies to keep the economies up-float, besides tourism. Even if the islands engage to a certain extent in agriculture, the imports of consumption products reach even 90% (as in other isolated and distant countries). Mauritius, for example, has risen from a poor to a middle-income economy, which indicates that the island is somewhat better off. Also, the government is the biggest employer in the islands which means that the growth of the private sector is limited. All of this contributed to focus the policies on international investments by offering tax benefits, easy registration and an affordable labour force.
The Offshore Island Business Centers
All of the five island countries, the Cook Islands, Marshall Islands, Mauritius, Saint Vincent and the Grenadines, and Seychelles are ideal destinations for starting a business. The procedures are more or less loose, and the governments, even when having the best intentions and solid legal bases, sometimes do not have enough power to enforce the legislation. This only means that it can be difficult to find a well-regulated broker in any of the islands, but it is not impossible. The best to do is to check if the brokers have other licenses in better-regulated countries before joining the broker. These islands used to be European colonies until some 50-60 years ago, and that is also one of the reasons why many companies rush to the already familiar set-up where they know the structure and powers of the government.
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FSPC Registered Brokers
If you are looking to enter the Marshall Islands financial market, or St. Vincent market, or any market of these islands, you will probably find that the brokers are registered with either the national regulator of the islands or with FSPC. Probably, some of the big broker companies can also be found in these former colonies, but the majority of offshore FSPC regulated Forex brokers do not have the needed reputation to be categorized as top Forex brokers. As we said, when registering at one of these locations, it is better to find a broker with multiple licenses. Top Forex brokers have to offer the highest level of quality which includes protection of their costumers, separate accounts for their clients, fast and accurate payouts, top trading platforms, a fast-responding and competent customer support, etc. The FSCP can be seen as an overall general regulatory framework which is in compliance with international basic guidelines, but still, a country has to offer its own regulation which is adjusted to the market conditions, the political system and life in that particular country. Therefore, it is always better to register with a national agency which is strictly in charge for the particular state, than with a multi-regulatory agency. The FSCP license can come in handy as a double security measure, but should not be taken as a guarantee on its own. Top Forex brokers registered with FSCP will probably have another or a series of other licenses because top brokers have already established businesses in other countries as well, and might use to FSCP for easier access to the isolated markets.