The Spanish supervisor of the financial markets puts I preserve the ‘financial chiringuitos’ from Cyprus. This week it was known that three investment firms from the Mediterranean country have been blocked as a result of an action by the National Securities Market Commission (CNMV) to protect Spanish investors.
They join three other firms that also suffered the same fate in recent months, in a battle against these types of establishments, which fail to comply with many of the European legal obligations.
The three firms that have had to ‘close down’ are OBR Investments Limited, Indication Investments (with trademark Libertex) y NEO Premium Investments, the latter with a trademark Brokereo and previously called Concorde Investments.
Previously, they had to do it in April ITrade Globalas well as your agent Alef & Kiai; ForexTB in June and Depaho in July.
“The decision is the result of the monitoring of entities in free provision of services that the CNMV carries out and the conclusions of which it transmits to the competent authorities so that they demand the cessation or rectification of bad practices when we have clear and demonstrable reasons”, sources from the Spanish supervisor explain.
This is the sixth time in a short time that entities with european passport who are dedicated, above all, to CFD trading They are forced to publish relevant information highlighting the important deficiencies in their operations that have been highlighted as a result of the supervision and monitoring work carried out by the body they preside Rodrigo Buenaventura.
“High risk and impact”
CFDs (contracts for difference) are financial products that the CNMV considers unsuitable for retailers due to their complexity and the entities that have published the relevant events displayed in Spain a strong activity of attracting clients through call centers, point out to EL ESPAÑOL-Invertia the sources of the supervisor consulted.
OBRInvest communicates since last August 9 in its web that suspends the recruitment and provision of services to new clients in Spain. In the case of Libertex, the Cypriot supervisor, Cysec, reports in your web of the agreement of August 3 of partial suspension of the authorization, which supposes the prohibition to carry out advertising activities, to attract new clients and to accept deposits from current clients with the sole purpose of providing guarantees, where appropriate, for open positions.
Cyprus.
On his side, Brokereo simply indicates that he communicates since August 16 in his web that temporarily suspends the provision of services to new clients in Spain, in line with the previous ones.
The Spanish supervisor has gone to hunt and capture these ‘chiringuitos’ as a result of complaints and information from investors they have contacted, a process of mystery shopping online or review of its pages web.
The CNMV advances that it intends to continue with active supervision in this area, considering it a “Area of high risk and of special impact” among affected investors.
The CNMV’s radar jumps when it detects aggressive commercial policies by these investment firms, which tend to promise returns that they cannot meet or do not fully convey the information they should report. The supervisors of France and Germany they are also on the prowl.
ESMA streamlines procedures
The concern is such that ESMA, the European ‘macro-supervisor’ of the financial markets, has opened a process to modify the procedure and thus be able to act more quickly in these types of cases. At present, it takes between two and three months to block these ‘chiringuitos’.
The usual protocol is that the CNMV communicates its investigation to the corresponding supervisor in the country of origin of that entity, in this case Cysec, and then it is the Cypriot supervisor who requires the firm in question to comply with community regulations. If not, it is sanctioned or its license to operate is withdrawn, depending on the degree of non-compliance. Many do not want to make the necessary investment for it or it is impossible for them to arrive on time, so they end up disappearing.
The objective of the ESMA is to eliminate intermediate steps and that the supervisor of one country can go directly to the investment firm of another country. This would reduce the deadline to act against these ‘pirates’ of the markets.
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Reference-www.elespanol.com