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story by: Kristina Frunze
CNMV issued warning against Trading Forex
31/05/2016
CNMV issued warning against Trading Forex

31 May AtoZForex, Vilnius — The Comisión Nacional del Mercado de Valores (CNMV), the regulatory body of the Spanish Stock Market, has issued a warning against Trading Forex broker. The latter is not authorized to provide investment services, including trading in, or advising on the securities or exchange contracts in Spain.

Trading Forex account suspended?

Trading Forex is reported as unregulated in Spain, hence, it is not authorized to solicit to residents in Spain. What is more, the unregulated company is forbidden from providing the investment services listed in the Securities Markets Law, which comprises investment advice or provision of secondary services, including Forex transactions.

The Trading Forex official website got suspended, as CNMV issued warning against it. The warning itself is pursuant to the second paragraph of Article 17 of the Securities Markets Law (recast approved by Royal Legislative Decree 4/2015, of 23 October).

As reported in the warning by CNMV, the unregulated broker:

‘is not authorised to provide the investment services detailed in Article 140 of the Securities Markets Law, or provide the auxiliary services detailed in letters a), b), d), f) and g) of Article 141 of said Law, which includes investment advice, in relation to the financial instruments detailed in article 2 of the said Law, including, to those purposes, transactions on foreign currency.’

Spanish regulator’s message and recent warnings

The CNMV warns Spain-based investors about the risk, while dealing with unregulated Forex brokers. It warns that opening the account with the broker without a license can be very costly since they are not watched by the authorities. The Spanish regulator attempts to take control of unauthorized financial services entities promoting their services to Spanish investors and to ensure a safe investment environment in the Spanish Stock Market.

Following the last updates, earlier this month, the CNMV issued warning against another unregulated firm, Tiger Asset Management. It is known, that the company was also soliciting to residents in Spain, without any permission by authorities.

Additionally, one more unregulated firm got into the blacklist of Spanish regulator this April. The IBA Markets has been marketing its services in the region without the due authorization from officials.

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