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AvaTrade and iCFD fined for the total amount of 375 000 EUR
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AvaTrade and iCFD fined for the total amount of 375 000 EUR

created Paweł MosionekAugust 24 2017

Belgian financial supervision, FSMA, announced that the Irish broker AvaTrade and iCFD will pay a fine of a total of 375 000 EUR in connection with a violation of the regulations of the local regulations. The amount of the fine was agreed by way of compromise, and the pages of both companies appeared annotation that they do not accept customers from Belgium.

Severe consequences of non-compliance with Belgian law

Almost exactly a year ago we have informed you about the introduction of legislation in Belgiumwhich were intended to prohibit the offering of investment services related to "high risk financial instruments" such as Forex / CFDs and Binary Options which are targeted at retail clients.

Entities were fined in the amounts of:

  • AvaTrade - 175 EUR
  • iCFD - 200 EUR

The regulator recently showed that AvaTrade EU, despite this, offered CFD services to Belgian residents. The broker himself does not admit to the allegations, despite the settlement. The financial penalty of iCFD is higher due to the fact that the broker provided services related to trade on binary options. According to FSMA, such a company is obliged to provide a prospectus in which there are complete data on the type of financial instruments offered and information related to risks that should be approved.

In addition, both companies allegedly offered investment in the so-called debuts on shares (or rather CFDs for shares) without submitting FSMA prospectuses.

The Belgian regulator unquestionably stated that the required documents were not provided by both AvaTrade EU and iCFD. The fine itself is not the only reprimand. Both brokers are forced to contact each Belgian customer in order to submit a proposal to close the investment account and offer withdrawal from the account.

 

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the ForexClub.pl website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.