11 April, AtoZForex, Lagos – In line with its duty to ensure a safe and sound investment environment for the public, Spain’s financial regulator, the National Securities Market Commission (CNMV) has issued another public warning about the illicit operations of various forex brokers. This time, the focus firm is IBA markets.
According to the Spanish financial watchdog, this firm has been selling its services in the region without the due authorization to do so. The CNMV specifically stated that IBA markets “is not authorized 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.”
Regulatory oversight, true or false?
Although it is clear that this firm is indeed not regulated by the National Securities Market Commission (CNMV), IBA Markets makes a couple of claims on its website pointing to the fact that it is regulated in Russia and Germany, a claim which although is yet to be verified, seems quite untrue. The firm clearly states on its website that: “IBA markets intends to provide its Clients with all the benefits related to the Regulation. The regulation has been defined in order to protect the Clients (Traders), ensuring operations transparency, full refund guarantee (withdrawals, …). As of today, IBA Markets has been granted with the Russian Financial Regulation (Federal Financial Markets Service – FFMS) and it is under the regulation process with BaFIN (the Germany’s Financial Authority), that will then grant IBA Markets with the high benefits of the MiFID European Passport.”
Just like in this case of the CNMV IBA Markets warning, it has become a regular practice for firms to claim authorization in various regions, yet offering its services in jurisdictions where it has no coverage. However, in the case of IBA markets, it is unlikely that the firm is indeed regulated in Russia and Germany as claimed, as the firm fails to state its license numbers. It is wise to avoid association or trading with such a firm.
Think we missed something? Let us know down in the comments section.