An Auckland currency brokerage that was in breach of its reporting requirements and shut down last week after an unexpected surge in the Swiss franc never considered it would not get a new licence from regulators.
Its auditor, however, flagged last June that if the Financial Markets Authority did not grant the company's licence, it would be in danger of having to close.
The Queen St company, which operates the Excel Markets trading system, said last Friday that most of its clients holding franc positions had been on the losing side of trades after Switzerland's central bank suddenly removed the currency's peg against the euro.
Global Brokers said client losses that could not be covered were passed on to the brokerage. As a result, it was unable to meet minimum regulatory capital requirements of $1 million and had to shut down, the firm said.
It emerged this week that the company had been in breach of regulations by not filing audited financial statements to the Companies Office.
