Georgia is home to a very healthy Financial market which allows businesses like trading brokerages to easily base themselves here and run a successful operation. The country has the 9th lowest tax economy in the world and has some of the most favorable licencing and regulatory requirements for financial services businesses. For instance, brokers can receive licences within 40-60 days of applying, have minimal operation costs, minimal requirements for offices, low taxation, favorable and reasonable regulations, and so much more. This is all thanks to the regulatory agency governing the markets here.show more
The regulatory agency responsible for the financial markets in Georgia is the National Bank of Georgia (NBG). This bank in its current form was established in 1991 and is defined by the constitution of Georgia. The NBG implements the monetary policy and holds, keeps and disposes the international foreign reserves of the country. As well, the NBG regulates and supervise the entire financial sector to ensure financial stability, transparency, and protection for the consumers. All brokers and financial services operating out of Georgia must receive licencing from the NBG and thus be regulated by them.
The NBG has numerous responsibilities because they are the sole regulator of the financial markets in Georgia. Therefore, they are responsible for the supervision of all financial entities such as exchanges and trading brokerages. The NBG must provide and enforce the rules and guidelines for financial businesses to operate by. As well, the NBG is responsible for the licensing of every financial business operating in Georgia. Other responsibilities include the gathering of information and producing statistical data in accordance with international standards. The NBG is also responsible for the effectiveness of all the payment systems in place in Georgia.
One of the primary responsibilities of the NBG is to protect and serve consumers in the financial markets. Therefore, they implement regulations to protect traders and investors from malpractices and fraudulent activities. The NBG will revoke licences of any business who does not comply or fails to meet the NBG standards of business. Also, the NBG will take customer complaints and conduct a formal investigation if necessary. All in all, the NBG is the financial watch dog over the entirety of the financial markets in Georgia which in return protects consumers.
NBG regulated brokers must adhere to various guidelines. For instance, the regulations imposed on brokers require them to submit periodic reports to the NBG as well as to undergo financial audits by a trusted third party. Brokerages and financial businesses must also train their employees and carry out their business practices accordingly. Every broker must obtain a licence by the NBG and have it renewed upon expiry.