INNOVATIVE SECURITIES LIMITEDINNOVATIVE SECURITIES LIMITED (ISL) has been a registered company in New Zealand (NZ) since 2008 (Company Number: 2191520; ISO 27001:2013 Certificate HU15/7528; Address: 13a/152 Quay Street, Cbd, Auckland, 1010 , NZ).
ISL has been in the Financial Service Provider Register of NZ as a supplier of financial services under number FSP25746 since 3 December 2012 and is also registered with the dispute resolution scheme, Financial Services Complaints Limited. It is registered to provide the following services: “Keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other person”.
This registration is primarily to ensure that the NZ authorities know who in NZ provides such services. Registration does not result in or indicate that the NZ Financial Markets Authority (FMA) will know of or necessarily have any supervisory responsibility or capacity in relation to ISL’s business outside NZ.
Applicable Law and regulations, regulatory supervision and reliance, practical responsibility for service delivery, obstacles to enforcement
Clients should not rely on the fact of ISL incorporation in NZ to assume prudential or compliance supervision of client dealings with ISL. NZ securities law and regulation does not purport to offer preventative investor protection outside NZ jurisdiction.
The NZ authorities have formal and informal cooperation arrangements with regulators of other countries, and they may collaborate to pursue fraud or non-compliance by parties outside their respective jurisdictions after it has become evident. But investors should not assume that incorporation or registration in NZ or any other state confers particular protection for them outside the relevant jurisdiction.
ISL international operations are accordingly not under routine surveillance by any authorities in NZ. ISL does not report to NZ authorities on the services we offer to you. While a breach of NZ law would expose ISL to enforcement action there, for offerings outside that jurisdiction that may have no effect on whether a client could recover anything from ISL in NZ. The dispute resolution scheme ISL has engaged in NZ may respond to complaints about international transactions, but that will not necessarily mean that there will be a practical compensation or precautionary supervision or preventative compliance verification on which a client should rely.
Registration is not licensing
ISL services and products are offered through the internet. They are not generally offered to NZ residents. They are not regulated or governed under NZ securities regulation. The FMA does not approve or license or supervise the specification or delivery of those services. It has powers to investigate ISL’s compliance with the NZ law but it cannot be expected to act proactively, or otherwise with respect to transactions that do not involve NZ domiciled parties.
Auckland office functions
ISL’s only physical office and staff are in Auckland, NZ. One of ISL’s directors lives in NZ. ISL pays tax in NZ and must comply with NZ law. The office in NZ manages ISL’s compliance with NZ regulations including taxation, financial reporting and accounting, record keeping, anti-money laundering procedures and company laws. The Auckland office staff monitors ISL’s transactions. They are responsible for client documentation.
Services rely on contractors outside NZ
Clients should understand that ISL’s services depend on third party and related party contractors and service providers that are not domiciled in NZ. This is for reasons of cost and efficiency. None of the important participants are subject to NZ financial market law or regulation.
It is not simple to attribute any geographic site of origin to a web delivered service supported or comprised of performance by multiple subordinate contractors in various parts of the world. It can be difficult to determine where such contracts are formed, and which law governs them, in the absence of specific agreement. Vital relationships and contracts are entered on line with various separate parties to deliver specialist elements of the operations that together comprise the products and services ISL agrees to provide to clients.
For example, Profit Max is ISL’s main financial service. It is offered by ISL, but not delivered by staff in the NZ office. Profit Max uses the GeoWealth Advisor Platform and Asset Management Services which are based in the United States. Currently the main enquiry contacts for ISL’s clients are employees of contracting parties and operate from offices in Europe. The banks and brokers (Interactive Broker and Saxo Bank) used by ISL in connection with services to our clients are also based in Europe.
Securities held in connection with ISL’s services to clients are highly unlikely to be held or deemed held in NZ. They will be in the custody and control of contractors mainly in Europe.