Asymmetric deviation, XTB and TJS. The Polish Financial Supervision Authority takes the floor

Asymmetric deviation is a term that quickly gained much popularity in the Polish trading world. If you don't know what we're talking about, be sure to read Have Artykuł. Last week The Trading Jam Foundation has issued 6 demandswhich had help XTB clients get compensation for using an asymmetrical parameter "Deviation" through the company and receive access to the secret report of the Polish Financial Supervision Authority, which was to contain the results of the inspection. Today we have published broker statement regarding the TJS manifesto.

This time the Polish Financial Supervision Authority itself took the floor on the matter Brokerage House X-Trade Brokers financial penalty in the amount of PLN 9,9. The broker appealed against this decision, but in June it was upheld by the Provincial Administrative Court. Can traders count on a refund and access to data contained in the document summarizing the results of the inspection?

Asymmetric deviation and the secret report of the Polish Financial Supervision Authority

Jacek Barczewski, Director of the Department of Social Communication at the KNF Office, in the published communication informed that the demands addressed to the Office by Trading Jam could not be fulfilled. According to Barczewski, if the KNF decided to follow the Foundation's request, it would break the law.

"The Polish Financial Supervision Authority, as a public administration body, operates solely on the basis and within the limits of legal provisions. According to art. 7 of the Constitution, the competences of public authorities cannot be presumed, they must be clearly and precisely defined in law. The KNF Office points out that the demands formulated by the Trading Jam foundation addressed to the KNF Office through the media would result in the supervisory body undertaking activities in violation of the law. "

According to Jacek Barczewski, the Polish Financial Supervision Authority complied with its obligations by conducting due diligence, while complying with applicable law.

"Other activities suggested by the foundation are not permitted by legal provisions describing the competences and responsibilities of the supervisory authority. Therefore, in its speeches, the Trading Jam foundation should not mislead those interested in the possibility of the Commission and the PFSA Office acting in their individual cases. This may endanger the legal interests of these persons by failing to resort to appropriate legal means. " - explains Barszczewski.

"The presented claims of the Trading Jam foundation therefore have no legal basis and may in effect create the mistaken impression that the Commission, not wanting to disclose the data desired by the foundation, including controls on other investment companies, acts against individual investors" - adds Barszczewski.

XTB penalty

A spokesman for the Polish regulator reminds that the PFSA imposed a financial penalty on XTB in the amount of PLN 9,9 million, including behind:

• "Providing brokerage services without taking into account the best interests of the client by asymmetrical setting of the deviation parameter as part of executing client orders in the instant model, and
• failure to inform potential clients about the exact manner of providing brokerage services for executing orders in the instant model, in the use of the deviation parameter, i.e. its unsymmetrical setting, and in the use of delay in the execution of orders of selected clients (using the delay parameter) "

X-Trade Brokers refers to independent expert opinions that have shown that the broker clients have not lost on the way orders are carried out. Such conclusions were to be agreed by the Provincial Administrative Court during the June hearing.

The XTB statement reads:

"The PFSA, as a result of the company's control, with regard to the asymmetric model of execution of some instant orders, recognized, inter alia, that the mere fact of not informing clients in the contractual documents about the rules of the transaction system exhausted the conditions necessary for the imposition of a financial penalty. The Polish Financial Supervision Authority did not determine whether specific clients suffered actual damage as a result. The Provincial Administrative Court essentially confirmed such a thesis in the justification of its later judgment regarding the company. "

So why was the punishment upheld by the Provincial Administrative Court? According to the court, the key violation turned out not to be the use of asymmetric deviation, but the lack of appropriate information in its regulations and agreements. Does this mean that even if the report were declassified, customers would not be entitled to any compensation that the Trading Jam Foundation is seeking to pay out? The final of the whole case is to take place in the Supreme Administrative Court, to which XTB has appealed.